Enterprise Investors in talks for Artima stores

Enterprise Investors, the company that manages the investment fund Polish European Fund, is in talks with the Artima supermarket chain, market sources told Ziarul Financiar. Artima was set up by businessman Florentin Banu.

If successful, Banu will be sealing a second deal for a business he started from scratch. In 2000 he sold his Joe IBC company to Nestle for several million euros. At the time, the company he started in 1994 together with his brother, was the market leader for wafers. With the money from the sale, he set up the Artima supermarket chain.

By becoming an Artima shareholder, Enterprise Investors would be making their second investment in Romania since 1999, when they bought a stake in mobile telephone operator Orange.

Late last year, Enterprise Investors failed in a different deal on the Romanian market: the acquisition of a 41% stake in consumer loans company Credisson for 9 million euros. The deal was announced during a press conference by the representatives of Enterprise Investors and Credisson, but eventually fell through amid rising interest in Credisson coming from strategic investors.

When contacted by Ziarul Financiar, representatives of Enterprise Investors and Artima were unwilling to comment on the Artima deal. According to sources, if Enterprise Investors becomes an Artima shareholder, this would allow the store network to begin preparations for integration into different chains.

At present, the 14 stores located in the western area of the country have sales areas of 500 square metres up to almost 2,000 square metres. Thus the large area stores could be taken over by certain supermarket networks, while the smaller stores would lure the discount networks that are set to enter the market over the following period – in particular the Plus network, which, market sources say, is very aggressive in looking for locations for the 120 stores it announced for the next five years.

According to company founder Florentin Banu the Artima network managed to make a profit last year, with their sales overshooting the level expected to reach 28 million euros. In 2003, the company’s turnover was about 16.4 million euros, according to the Finance Ministry web site.

The 14 stores opened so far in the western and south-western region of the country have involved investments of 14 million euros, says Artima, with the company attracting as shareholders investment funds, such as SEAF Transbalkan Romania Fund and SEAF Growth Fund, and financial institutions like DEG.