Vel Pitar in talks for takeover of Miercurea Ciuc bakery

Vel Pitar Ramnicu-Valcea, one of the main players in the milling and bakery industry, is in talks for the takeover of the majority stake in Harmopan Miercurea Ciuc, a regional player in Harghita, according to industry sources.

According to the Ministry of Finance, Harmopan”s turnover for 2003 reached 8.4 million euros, with net profits close to 600,000 euros and total debts of 450,000 euros.

Harmopan”s management was unavailable for comment. Vel Pitar is one of the most active players on the milling and bakery market and has recently announced its interest in acquisitions in the Balkan region. “We are interested in company acquisitions. Personally, I know of no negotiations for the acquisition of Harmopan, but Vel Pitar is likely to be in preliminary talks,” said Siminel Andrei, director of Broadhurst investment fund, which controls Vel Pitar.

At the start of this week Panem Giurgiu and Panificatie Postavarul Brasov announced that they would be taken over by Vel Pitar, with the operation being confirmed by Vel Pitar on Tuesday. The last two year”s saw Vel Pitar buy Libertatea Panificatie Bucuresti, the bread factory in Bals, Gorjpan Targu-Jiu, Pangran Iasi and Spicul Arges Pitesti. According to company officials speaking after completion of the deal, the company was looking for other players with a view to possible takeovers. Vel Pitar was set up in late 2001 through the merger of Mopariv Ramnicu-Valcea, Berceni Bucuresti, Granpan Tecuci and Mopariv Cluj-Napoca.

Half of Harmopan stock is owned by members of the company management, with the rest belonging to smaller shareholders. The same sources put the value of the transaction at 5-10 million euros.

This year Vel Pitar expects its turnover to reach 65 million euros (2,390 billion ROL), almost 4 million euros (140 billion ROL) higher than in 2004 thanks to investments scheduled for this year.

Gross profits for this year are expected to approach 3.5 million euros (125.5 billion ROL) and revenues to hit 71 million euros (2,630 billion ROL), with expenses being in the region of 67.5 million euros (2,504 billion ROL). Last year”s net profits were worth 1.9 million euros (78.3 billion ROL), of which 1.8 million euros (74.2 billion ROL) will be used to raise the company”s own financing sources, the company announced on the Stock Exchange.

stelian.negrea@zf.ro