German fund pays 3.8m euros for 40% in Ulker

The German Investment Fund (DEG), with a portfolio of over 100 million euros in Romania, will acquire 40% in the Ulker biscuit plant located near Bucharest, in the wake of a share capital increase of 3.8 million euros.

“We secured the partnership with Deutsche Investitions und Entwicklungsgesellschaft GmbH (DEG) so as to further finance investments in Romania,” stated Ender Bolat, general manager of Eurex Alimentare, the production unit of the Ulker group in Romania.

Last year, Ulker, the biggest Turkish producer in the food industry, announced investments worth more than 21.8 million dollars in its first production facility in Romania. To finance investments, Ulker originally contracted a loan standing at 8.9 million dollars from the European Bank for Reconstruction and Development.

“In the wake of securing the partnership with DEG, the German company will bring 3.8 million euros to our investments and will hold a share of 40% in the plant,” Bolat also said.

The new share capital increase will be added to the 5m-euro raise operated this September, when the company used its own financial resources. These moves are intended to sustain investments in the plant near Bucharest.

“The plant in Romania is an expansion base for Europe,” he specified. Ulker has an annual turnover worth 4bn dollars and owns plants in Turkey, Kazakhstan, Uzbekistan, Ukraine, Saudi Arabia and Egypt.

The Romanian biscuit market, put at 50m euros, is extremely dynamic, especially after a number of strong competitors joined it this year, either through their own production facilities, such as Supreme Chocolat (Ulpio), European Drinks (Zoo), Unilever (Delma, produced by Dobrogea Group), Elite (Merlin) or through imports, such as Danone (LU), Nestle (Nestle), and Parmalat (Grisbi).