Context

Solina Group continues its aggressive external growth strategy by acquiring the "Industrial Flavoring" division of the Finnish Paulig Group. This transaction includes the subsidiaries Lihel Oy (Finland), Nordfalks AS (Estonia), and Nordfalks Industrie AB (Sweden). The acquisition adds approximately EUR54 million in revenue to Solina, pushing its projected turnover to EUR320 million for 2015. Strategically, this deal completes Solina's coverage of Northern Europe (following the 2014 acquisition of SFK Food in Denmark) and opens new markets in Finland, Norway, Sweden, Russia, and the Baltics. The transaction was financed using existing acquisition credit lines secured during Solina's 2014 refinancing.

Target

The Corporate Flavoring Division of the Finnish food conglomerate Paulig Group consists of three main entities: Lihel Oy (Finland), Nordfalks AS (Estonia), and Nordfalks Industrie AB (Sweden). Together, they form the leading producer of savory ingredients and spice blends for the food industry in Northern Europe. The division specializes in functional marinades and seasonings for the meat processing industry, serving clients across Scandinavia, the Baltics, and Russia.