Sweets manufacturer Panda sold to Norway

The Finnish sweets manufacturer Oy Panda Ab was sold on Thursday to Oy Felix Abba Ab, a subsidiary of the Norwegian Orkla Group. Panda produces and markets liquorice and chocolate products under the Panda brand. Its head office and production facilities are situated in Vaajakoski, near Jyväskylä in Central Finland.
      Originally, Panda was established in Vaajakoski by the Finnish cooperative SOK, but it has had many owners after that. Since 2000, the company has been owned by MB Funds, an independent Finnish private equity firm, together with Panda's top management. In the course of these five years, Panda has increased its market share and substantially improved the profitability of its operations.
      "The company's result has outperformed all its objectives. At present, Panda is in a new stage as a company. We believe that its strong new Nordic owner will provide it with more business development resources and potential," says Hannu Puhakka, a partner in MB Funds.
     
Panda's net sales in 2004 amounted to about EUR 52 million, showing a profit of EUR 3.9 million. The company has over 300 employees.
      The parties to the deal have agreed that the transaction price will not be made public. Moreover, the transaction must be ratified by the competition authorities before its completion.
     
Panda's market share in Finland is about 10%. On the other hand, the company is the market leader in liquorice products and a leading manufacturer of assorted chocolate boxes in Finland.
      Panda's CEO Risto Jämsén believes that the deal will promote Panda's exports particularly to other Nordic countries. Currently, 70% of the products are sold to Finnish consumers and only 30% are exported, with the main export countries being the United Kingdom and the USA.
      Jämsén is confident that Panda's operations in Vaajakoski will be continued: "This is a very profitable unit and it is being developed further". His opinion is shared by Felix Abba's CEO Clas Göran Hagström.
      "Panda is a very sound company and it has developed favourably. Its turnover has grown and its profits have improved. We are willing to help it grow further", Hagström says.
     
To the employees, the transaction came as a surprise, even though they knew that investment companies typically sell their investments sooner or later.
      Chief shop steward Taisto Färman finds the new situation promising. "The new owner has confirmed that production will continue in the Vaajakoski facility", Färman said, and he did not express any fears for the future.
     
The business transaction is part of natural progress in the confectionery sector, confirms Lea Lastikka of the Finnish Food and Drink Industries' Federation (FFDIF). Competition in the field is tough and the share of exports is high, as international confectionery giants have strong brands.
      Even though Felix Abba is owned by a Norwegian group, CEO Jämsén still regards Panda as Finnish: "Finnish workers manufacture Finnish sweets with Finnish flavour for Finnish people".


Previously in HS International Edition:
  Sweets manufacturer Panda withdraws its salmiac liqueur confectionery from sale (13.10.2004)

Links:
  MB Funds News release: MB Funds sells Panda to Felix Abba
  Panda News release: Felix Abba acquires Oy Panda Ab
  Finnish Food and Drink Industries' Federation (FFDIF)