RAEF in talks to buy into Alin Trans Deva

The market for international road carriers, estimated at about 1bn euros for this year, has attracted the attention of major foreign players, as well as investment funds impressed by progress made this year and forecasts for the post-EU accession period.

The Romanian-American Enterprise Fund is in talks to buy a stake in the leading road carrier, Alin Trans Deva, a business that was developed by 33-year old entrepreneur, Alin Popa. Popa also owns a shipping company called Edy Spedition. The combined revenues of the two companies amounted to 30 million euros last year, while their combined debts totalled 30 million euros and their net profit for the year came to 300,000 euros, according to the Finance Ministry website.

RAEF officials declined to comment on the negotiations.

Mircea Daraban, general manager of Edy Spedition, denied the rumoured talks with RAEF, though did confirm plans to raise capital. “We are not in advanced talks with any potential source of funding, though we are interested in attracting capital. I cannot comment on our projects yet,” Daraban said.

Transport market sources claim the two parties have in fact been in talks for over a year, with the price of the potential transaction said to be between $1 and $5 million, depending on the size of the stake that changes hands.

Florin Mihut, chairman of the National Union of Road Carriers in Romania (UNTRR), an organisation that brings together companies with a total fleet size of 10,000 trucks, says the Romanian market is attracting the attention of major investors due to the upcoming EU accession.

Alin Trans is one of the most dynamic operators on the Romanian market. It purchased no fewer than 100 trucks at the end of last year to add to its existing fleet of 200.

Alin Trans is the leading international road carrier company, while Edy Spedition is a domestic market leader, with clients that include Coca Cola and Maersk.

UNTRR estimates point to a 20% growth in the market this year from the level in 2003 due to an increase in trade between Romania and EU member states. The entire number of transport licences for this year for destinations such as Italy and Germany was exhausted in only eight months, and additional licenses obtained through negotiations will not be sufficient to meet the high demand of carriers.
stelian.negrea@zf.ro ; vlad.nicolaescu@zf.ro