Romanian dairy producer Albalact is in the process of being taken over by French group Lactalis, Mediafax informs. Albalact’s shareholders have agreed to sell their stakes totaling 70.3 percent in a takeover bid launched by Lactalis aiming to hold 100 percent of Albalact.
This is the second big move the French group is making in Romania, after buying LaDorna from Jean Valvis in 2008.
“Lactalis has contracted with vendor shareholders, holding 70.3 percent of aggregate capital of Albalact (…) with the aim of acquiring all the shares held by selling shareholders,” says Albalact in a statement, as quoted by Mediafax.
The shareholders referred to are Raul Ciurtin, Lorena Beatrice Ciurtin, Crisware Holdings Limited, Croniar Holdings Limited and RC2 (Cyprus) Limited. The agreement will be overviewed by the Competition Council, after which Lactalis will make a public takeover offer.
According to local media, the transaction would amount to RON 407 million (EUR 89.7 million), from which Albalact’s debt will be deducted.
Following the announcement, the company shares on the BVB increased by 14.8 percent, close to the maximum allowed in a session at RON 0.38 per share.
Albalact is the largest the largest locally owned company in the dairy industry. The company holds 99.01 percent of Raraul Campulung Moldovenesc shares and 100 percent of Albalact Logistic SRL, with over 1,000 employees in all three entities. Albalact sells fresh, pasteurized and UHT products under brands like Zuzu, Fulga, Raraul, Albalact and Poiana Florilor.
The dairy producer had registered an 86 percent increase in net profits during the first half of 2015, reaching RON 4.9 million (EUR 1.08 million), while its turnover went up by almost 10 percent, to RON 237.8 million (EUR 52.39 million).
Lactalis is an international player in the milk processing industry, holding many international brands such as President, Galbani, Parmalat and Santal, while on the regional market its most popular barnds are Lactel, La Laitiere, Dukat, Celia, Fibresse, Omega 3 Plus, Vaalia and Zymil.
The group currently has 75,000 employees and owns more than 200 factories located in 43 countries worldwide. In 2015, Lactalis Group had a turnover of EUR 17 billion.