Caroli and Campofrio merge operations in share swap and EUR 12.3 mln cash deal

Romanian fresh cold cuts producer Caroli Foods Group and European producer Campofrio Food Group have merged their operations in Romania, Bulgaria, the Republic of Moldova, Serbia, Ukraine and Turkey, the companies have announced. The joint venture, which will run under the Caroli Foods Group brand name, will create a company with a cumulated turnover of EUR 120 million and a market share of 16 percent on the processed meat products segment, according to the firms. The new company will be 51 percent owned by Caroli. Campofrio paid cash for a share package in order to achieve its 49 percent stake.

“Campofrio will hold 49 percent of the resulting group in exchange for the contribution of its shares in its Romanian subsidiary Tabco Campofrio and a cash payment of EUR 12.3 million subject to final price adjustments,” said Campofrio representatives. The current CEO of Caroli Foods, Haluk Akdemir, will become the CEO of the venture. The new company will focus on Romania as its main sales market but intends to expand in South Eastern Europe as well. The deal is pending approval by the Competition Council.

Romanian Caroli Foods Group was set up 12 years ago. The firm has invested EUR 35 million since its inception. It employs 1,300 people and runs two factories in Pitesti. Italian Campofrio Food Group posted sales of EUR 1.8 billion in 2009 and has 9,000 employees.

Corina Saceanu

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