The Swedish investment fund Oresa Ventures is close to selling the La Fantana business- the biggest bottler for water cooler systems, to a financial investor for more than 35 million euros, market sources have told ZF.
La Fantana is held by Oresa and Cristian Amza, a minority shareholder and general manager of the company. The business earned 19 million euros this year operating on the markets of Romania and Serbia.
According to the quoted sources, Oresa had several offers on the table, from both strategic and financial investors. However, the company ultimately chose to continue talks with only one financial investor.
The deal may be struck the by the end of the month, at which time the financial investor will be announced.
Oresa officials did not care to comment on the information. La Fantana SRL, controlled by La Fantana Holding, posted 12 million-euro turnover on the domestic market, with a profit margin of 9%. The profit tripled compared with 2005. On the two markets where it is currently operating, cumulated sales reached 15.2 million euros in 2006, an increase of more than 35% on the figures recorded in 2005.
The company completed a 2.5 million-euro investment in Sibiu with a new bottling system for water coolers, similar to the one implemented in the factory it holds in Bucharest. The second producing facility of La Fantana is located in Talmaciu (Sibiu) and was built to supply the West of the country.
Oresa Ventures created the La Fantana business by taking over the Aqua Natural company, which operated on the water bottling market in 2001. The La Fantana natural water was launched on the market towards the end of 2001, as a result of 3 million-dollar investments made largely in the acquisition of water bottling and testing equipment.
La Fantana expanded on the Serbian market three years later, and aims to enter other markets in the region, such as Bulgaria or Ukraine.
Oresa is a fund that has been operating on the domestic market for nearly ten years, having held different shares in beer, outdoor advertising, leasing, consumer finance (Credisson) and home appliances (Flanco) companies. It took over 49% in paint producer Guzuchim (now Fabryo) last year, in a deal worth 9 million euros (shares plus investments).
Distribution of still water through water cooler systems has witnessed a significant development over the last few years, with almost every public space having a system installed. Market players expect the over 25% market growth recorded last year will continue throughout 2007.
La Fantana's most important competitor is Cumpana, held by Cumpana 1993, called Prudent Invest until 2004 and completely Romanian-owned. Cumpana was launched on the market in 2000 and was the first bottled water for water coolers in Romania.
Competition on the market is getting fiercer with the entry of bottlers like Perla Harghitei (Cristalina) on a niche segment - bottled mineral water for water cooler systems. Another firm, Aqua Regis (bottler of Sapte Izvoare), has recently concluded a partnership with Perla Harghitei to distribute the Cristalina product (partly decarbonated mineral water within the water cooler system).
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