Under the agreement, Orkla will buy Rieber family's stake in Rieber & Soen for a price of NOK66.58 ($11.23) per share.
Orkla CEO Åge Korsvold said through the acquisition of Rieber & Soen, Orkla expands its product range, and gains leading market positions in categories that are new to the company.
"The company has strong brands that are an optimal fit for Orkla's product portfolio as regards categories, production technology and geography," Korsvold added.
Rieber & Soen, which is listed on the Oslo Stock Exchange, supplies to grocery stores in Nordic countries - regions in Central Europe and Russia.
It owns Nordic condiment firm K-Salat, Norwegian food company Toro, Polish dessert brand Delecta, Russian nuts company Chaka, Czech food manufacturer Vitan, and Danish mustard brand Bähncke, among others.
The company also supplies the food service sector in Norway, Sweden, Denmark, the Czech Republic and Slovakia.
In 2011, Rieber & Soen posted sales of about NOK 4.3bn ($725m), and operating profit before depreciation and amortisation (EBITDA) of NOK464m ($78.29m) in 2011.
The transaction, which is subject to approval from the European Commission and Russian competition authorities, is expected to be completed by the end of first quarter of 2013.
Following this, Orkla will buy out the minority shareholders of the company at the same price per share, and seek to delist Rieber & Soen from the Oslo Stock Exchange.
