Estonian Firm Acquires Põltsamaa Brand, Securing Local Production
Estonian food wholesaler Svensky Kaubanduse AS has acquired the Põltsamaa factory and brand from Orkla Eesti, a strategic deal that preserves all existing employment contracts and establishes a future partnership where Orkla will continue to order products from the facility.
- —Svensky Kaubanduse AS, an Estonian-capitalized food wholesale and production company, has finalized the acquisition of Orkla Eesti's Põltsamaa factory and brand.
- —The sale includes the production complex, brand, products, and existing employment contracts, with production expected to continue at the Põltsamaa facility.
- —Orkla Eesti and Svensky Kaubanduse AS have agreed on a future partnership, with Orkla continuing to order products, such as vegetable preserves, from the Põltsamaa factory.
- —The transfer of the Põltsamaa factory to the new owner is scheduled for the end of April, pending approval from the Estonian Competition Authority.
- —Orkla Eesti is divesting the Põltsamaa business to focus on its core strengths and strategic product groups, while continuing to market brands like Kalev, Taffel, Felix, Pai, and Grandiosa.
Recap
The acquisition of Põltsamaa by Svensky Kaubanduse AS marks a strategic consolidation within Estonia's food industry, returning a legacy brand to domestic ownership. For Orkla Eesti, the sale is a calculated move to streamline its portfolio and focus on core assets. The deal's structure, which preserves jobs and establishes an ongoing supply partnership, indicates a carefully managed transition designed to maintain market stability and brand continuity, pending regulatory approval.