TALLINN — AS Luterma, the sole owner of Estonia’s iconic chocolate factory Kalev is making his second attempt to sell his company, having signed a non-binding initial purchasing agreement with Finland-based Felix Abba owned by Norwegian food company Orkla on Tuesday.
Kalev Chocolate Factory, founded in 1806 and a national symbol of sorts, is selling 100 percent of its assets including the factory near Tallinn, production equipment and the related trademarks. The company also owns the [private_supervisor]Maiasmokk café, the oldest bakery in Tallinn. Kalev’s annual net turnover is approximately €28 million and has 386 employees on its payroll.
It is not known how much Kalev is selling for, as both companies agreed not to publish it. However, in 2007 Kruuda asked for 880 million krooni (€56.2 million) from Alta Capital to purchase Kalev from him, but Alta called the deal off once the financial crisis devalued the price and Alta Foods decided to break the deal. Alta Foods gave Kalev €6 million as prepayment, but Kalev refused to pay it back. Alta then filed a lawsuit against Kalev and in Nov. 2008 Harju County Court decided to seize 15 percent of Kalev’s assets. Both Kalev and Orkla hope that the stocks will be released shortly.
Oliver Kruuda, the majority owner of Luterma whose shares include 100 percent the chocolate factory told the press Tuesday that the deal is a positive growth for Kalev.
“Felix Abba and Orkla is a strategic buyer who has skills and interest to develop the chocolate factory and its business activity,” said Kruuda.
The deal is subject to the approval of the competition authorities in both countries. [/private_supervisor] [private_subscription 1 month]Maiasmokk café, the oldest bakery in Tallinn. Kalev’s annual net turnover is approximately €28 million and has 386 employees on its payroll.
It is not known how much Kalev is selling for, as both companies agreed not to publish it. However, in 2007 Kruuda asked for 880 million krooni (€56.2 million) from Alta Capital to purchase Kalev from him, but Alta called the deal off once the financial crisis devalued the price and Alta Foods decided to break the deal. Alta Foods gave Kalev €6 million as prepayment, but Kalev refused to pay it back. Alta then filed a lawsuit against Kalev and in Nov. 2008 Harju County Court decided to seize 15 percent of Kalev’s assets. Both Kalev and Orkla hope that the stocks will be released shortly.
Oliver Kruuda, the majority owner of Luterma whose shares include 100 percent the chocolate factory told the press Tuesday that the deal is a positive growth for Kalev.
“Felix Abba and Orkla is a strategic buyer who has skills and interest to develop the chocolate factory and its business activity,” said Kruuda.
The deal is subject to the approval of the competition authorities in both countries. [/private_subscription 1 month] [private_subscription 4 months]Maiasmokk café, the oldest bakery in Tallinn. Kalev’s annual net turnover is approximately €28 million and has 386 employees on its payroll.
It is not known how much Kalev is selling for, as both companies agreed not to publish it. However, in 2007 Kruuda asked for 880 million krooni (€56.2 million) from Alta Capital to purchase Kalev from him, but Alta called the deal off once the financial crisis devalued the price and Alta Foods decided to break the deal. Alta Foods gave Kalev €6 million as prepayment, but Kalev refused to pay it back. Alta then filed a lawsuit against Kalev and in Nov. 2008 Harju County Court decided to seize 15 percent of Kalev’s assets. Both Kalev and Orkla hope that the stocks will be released shortly.
Oliver Kruuda, the majority owner of Luterma whose shares include 100 percent the chocolate factory told the press Tuesday that the deal is a positive growth for Kalev.
“Felix Abba and Orkla is a strategic buyer who has skills and interest to develop the chocolate factory and its business activity,” said Kruuda.
The deal is subject to the approval of the competition authorities in both countries. [/private_subscription 4 months] [private_subscription 1 year]Maiasmokk café, the oldest bakery in Tallinn. Kalev’s annual net turnover is approximately €28 million and has 386 employees on its payroll.
It is not known how much Kalev is selling for, as both companies agreed not to publish it. However, in 2007 Kruuda asked for 880 million krooni (€56.2 million) from Alta Capital to purchase Kalev from him, but Alta called the deal off once the financial crisis devalued the price and Alta Foods decided to break the deal. Alta Foods gave Kalev €6 million as prepayment, but Kalev refused to pay it back. Alta then filed a lawsuit against Kalev and in Nov. 2008 Harju County Court decided to seize 15 percent of Kalev’s assets. Both Kalev and Orkla hope that the stocks will be released shortly.
Oliver Kruuda, the majority owner of Luterma whose shares include 100 percent the chocolate factory told the press Tuesday that the deal is a positive growth for Kalev.
“Felix Abba and Orkla is a strategic buyer who has skills and interest to develop the chocolate factory and its business activity,” said Kruuda.
The deal is subject to the approval of the competition authorities in both countries. [/private_subscription 1 year]
— This is a paid article. To subscribe or extend your subscription, click here.
