Norwegian consumer goods firm Dellia Group is set to acquire Kirirom Food Production, its primary supplier of dried fruit products. This strategic move reflects Dellia’s commitment to enhancing its position in the food and drink business.
The acquisition values Kirirom at an enterprise value of $36 million on a cash and debt-free basis. Moreover, this deal will involve Dellia purchasing 100% of the shares in a yet-to-be-formed Singapore-registered company owned by Kirirom’s Dalis Chhorn, which will in turn hold all Kirirom shares.
Jan Storli Eriksen, founder and CEO of Dellia, stated, “Bringing Kirirom and Dellia together under one company began as a shared vision in 2022, in the mountains at Gaustablikk with Dalis Chhorn, the owner of Kirirom.” Notably, the agreed consideration for the shares comes to around $26 million after accounting for approximately $10 million in net debt.
Kirirom, established in 2013, sources its raw materials from a combination of its own farming, contract farming agreements, and cooperative purchases. By the end of 2024, Kirirom employed around 1,000 staff, with its workforce now growing to approximately 3,600 employees.
Following the completion of the deal, Dellia will manage Kirirom’s fruit cultivation operations. As part of the transaction, Dellia will invest $1 million to support the separation of ten hectares of land adjacent to the processing plant into a new joint land-owning vehicle. Additionally, Dellia will prefund this entity with another $3.9 million to acquire an extra 39 hectares around the factory for potential future expansion.
This acquisition is poised to increase Dellia’s production capacity, allowing the firm to capitalize on trends in the food and beverage industry and extend its market reach in Europe and China. Currently, Kirirom’s Cambodian plant has a production capacity of 6,000 tons in 2025, expected to double to 12,000 tons by 2026.
Dellia has already allocated capital expenditure necessary to boost this capacity. Moreover, Kirirom recently installed production lines for Dellia’s chocolate-coated dried fruit and dates range, which will commence operations in the first quarter of 2026.
Dellia is actively developing and marketing its dried fruit brands, including Sunshine Delights, Dippies, and A Date With, while distributing products through about 12,800 stores across the Nordics. The vertical integration of Kirirom is essential for advancing Dellia’s growth ambitions and consolidating its products under the global brand, Sunshine Delights.
This acquisition will also enhance Dellia’s oversight of its supply chain while reducing dependency on external suppliers. Kirirom serves as a critical part of Dellia’s sourcing infrastructure, providing about 60% of the factory’s volume to the Norwegian group. Beyond Dellia’s product demands, Kirirom runs a contract manufacturing operation catering to a well-established international clientele, including significant retailers across the US, Asia-Pacific, and Australia. This operation, excluding Dellia’s volumes, accounted for roughly 40% of total production in 2025 and is anticipated to grant Dellia immediate access to global markets.
The acquisition is on track to conclude in the second quarter of 2026, pending customary conditions. Additionally, Dellia recently completed a private placement of 650,000 new shares at Nkr310 ($30.57) per share, generating gross proceeds of Nkr201.5 million. The company noted that the placement attracted strong interest and was oversubscribed.
Dellia plans to utilize the proceeds from this private placement to fund the cash consideration for the acquisition and pre-fund the associated land-owning company. Funds will also be allocated towards repaying existing debts in Kirirom.
In November, Dellia reported third-quarter revenue of Nkr205.4 million, marking a 156% increase year-on-year. Earnings before interest and taxes (EBIT) soared 312% to Nkr29.1 million, with the EBIT margin improving from 8.8% to 14.1% year-on-year. The recently listed company has projected revenues of approximately Nkr660 million for 2025, with an EBIT forecast, excluding IPO-related costs, of around Nkr100 million.
Including Kirirom, pro-forma revenues for 2025 are estimated to reach about Nkr800 million, positioning Dellia favorably within the evolving landscape of food and drink consumer trends.
