La Festa after Oltchim's juices and canned goods

Polish juice and cappuccino maker La Festa, which holds the natural juice brand Tedi is planning to buy the Raureni juice and canned goods factory, controlled by chemical plant Oltchim Ramnicu Valcea.
The news was released by the Romanian Agency for Foreign Investment (ARIS). The representatives of the two companies are rather reluctant in making statements at the moment.
“It may be done (i.e. the acquisition of the factory in Raureni). We are not at liberty to provide details for the moment, though,” Zelazowski Sebastian, La Festa general manager, told Ziarul Financiar.
ARIS says La Festa has already sent letters of intent to Oltchim and to the Privatisation Authority (APAPS), Oltchim’s majority shareholder.
Constantin Roibu, Oltchim general manager, however, says he knows nothing about La Festa’s interest.
“An audit of the factory in view of selling it is currently in progress, but I’ve heard nothing about La Festa’s plans,” Roibu told ZF.
The factory in Raureni is part of Oltchim’s foodstuffs division, which the plant will have to sell this year if privatisation is to be resumed. The factory makes various sorts of jam, canned goods and stewed fruit, as well as natural juices. The juices are precisely the reason why La Festa should be interested, as it sells the Tedi and Duo Fruo juices on the Romanian market.
Oltchim’s foodstuffs division totalled $8.5 million in sales last year, that is 4% of the total turnover of the group. It comprises Fabrica de Conserve (Canned Goods Factory) Raureni, Avicola (Poultry Farm) Babeni (Valcea), Fabrica de Nutreturi Combinate (Mixed Fodder Factory- FNC) Babeni and Suinprod Babeni (swine farm).
La Festa sells some $23 million’s worth on the Romanian market. The Polish company has two factories in Romania, one in Valenii de Munte and one in Popesti-Leordeni. The Valenii de Munte factory, which is now seeing an ongoing investment of $20 million, makes the Tedi juices and may also start producing the Duo Fruo juices made from various fruit mixes.
Aside from the two juice brands, La Festa also produces the La Festa cappuccino and hot chocolate brands at its Popesti-Leordeni factory established in 1997.  laurentiu.ispir@zf.ro