Greek group Chipita raised its stake in its Romanian subsidiary from 51.33% to 92.75% in a deal that saw the company take over a minority stake in the East-European unit.
Similar increases were registered in the case of production units based in Bulgaria and Poland and of commercial companies held in Hungary, the Czech Republic and Slovakia, according to Reporter.gr.
The Greek group bought the 28.74% stake in Chipita East Europe from an investment fund belonging to Global Finance for 25.66 million euros and the 12.68% stake owned by Greek ice cream producer Delta Holding for 11.32 million euros.
“By selling its stake in Chipita East Europe, Delta”s profit was twice the original investment,” says Reporter.gr, quoting sources familiar with the deal. Delta owns an ice cream plant in Romania.
Global Finance also invested in Romania, in the Delta branch, in pharmaceuticals company Sicomed, in furniture maker Neoset, in mobile telephony operator Orange, as well as in Titan/Moara Loulis bakery.
Chipita Romania last year completed an investment worth 16 million euros in a new plant with three production lines. In 1999, the company bought a production line from another Greek snacks and chips producer, Star Foods company, and two years later purchased the croissant business of Best Foods, another company of Greek origin, which was left with the production of snacks. Since it entered the Romanian market, in 1999, Chipita has invested around 30 million euros, including the construction of a new plant.
The product portfolio of the Romanian unit includes croissants in packages of 65 and 90 grammes, sold under the 7Days/Fantastic Star, Olala and Chipicao brands (the first two were acquired from Star Foods in 1999) and under the Mini 7 Days brand. Romanian products are also exported on the Hungarian market. Beside croissants, the company distributes bake rolls on the Romanian market. However, Chipita is not planning to manufacture them in Romania, but imports these products from its production units in Eastern Europe.
Chipita”s participation in Russian operations will remain at 51.33%.
“The acquisition of stock in the Eastern European operations is a positive step, considering the Greek firm is expecting considerable sales growth over the following years,” reads the above-quoted source.
vlad.nicolaescu@zf.ro