Norwegian consumer goods group Orkla has entered into an agreement to purchase Swedish company Health and Sports Nutrition Group HSNG AB (HSNG). HSNG runs the e-commerce portals Gymgrossisten and Bodystore, and it is billed as the biggest online health and sports nutrition company in the Nordic region.
Orkla has reportedly agreed to purchase HSNG, and its Gymgrossisten and Bodystore websites, for SEK 360 million (US$42.4 million); although the acquisition requires the approval of competition authorities in Austria, Norway and Sweden.
Through the Gymgrossisten and Bodystore e-commerce portals, HSNG offers dietary supplements, health and well-being products, active wear, equipment and accessories to a broad customer base in the Nordic region. Its sales portfolio includes proprietary brands and products distributed on behalf of third parties. The two websites set to be purchased by Orkla receive 24 million visits per year.
“Orkla’s goal is to strengthen its focus on digital marketing and sales, and through this acquisition will gain proximity to a large number of engaged consumers,” said Stig Ebert Nilssen, Orkla EVP and CEO of Orkla Care.
He continued, “Health is a priority area for us, and we see good opportunities for collaboration with our existing activities, in the form of greater distribution through traditional sales channels and, not least, enhanced consumer insight.”
Gymgrossisten primarily targets athletes and active sports enthusiasts. Bodystore is a full-range store for health-conscious consumers, and ‘caters to all customer groups with an interest in health and wellness’. HSNG has a product development team consisting of experienced nutritionists who provide customer services and product advice directly to consumers.
HSNG’s operations will be maintained as a separate unit in the Orkla Care business division.
HSNG is currently owned by Qliro Group and has around 170 employees. The company is headquartered in Stockholm and has a 12,700 sq.m. logistics centre in Trollhättan. As at the last rolling 12 months per 1 October, HSNG had net sales of SEK 772.8 million and EBITDA of SEK 38.4 million. A total of 60% of the HSNG’s turnover is generated in Sweden, and the rest chiefly in Finland, Norway and Denmark.
Orkla is a leading supplier of branded consumer goods and concept solutions to the grocery, out-of-home and bakery markets in the Nordics, Baltics and selected markets in Central Europe and India. Orkla is listed on the Oslo Stock Exchange and its head office is in Oslo. In 2016, the Group had a turnover of approximately NOK 38 billion (US$4.6 billion), and 18,000 employees at year end.