Businessman Radu Timis, shareholder of CrisTim, the leader of the domestic charcuterie market, is negotiating with several companies from the charcuterie industry and also investment funds in an attempt to close a partnership.
"We are interested in closing a partnership in order to be able to continue the company's development domestically. Among the companies that we are in negotiations with are players such as Danish Crown and Campofrio, as well as investment funds," said Radu Timis, general manager and shareholder of CrisTim.
Danish Crown and Campofrio are among the biggest companies in the charcuterie industry both in Europe and at a global level. The negotiations with Spanish producer Campofrio have been confirmed by representatives of its local branch, Tabco-Campofrio.
"The two companies have had exploratory talks. I couldn't say if they have developed any further, but they did not involve the local business," said Ovidiu Wencz, general manager of Tabco-Campofrio.
Radu Timis explained that he was unable to provide an estimate on the value of the stake he would relinquish as the result of a partnership. "If we sell to an investment fund, we will sell a minority stake. However, if we choose to close a partnership with a strategic partner, then we may sell either half of the shares or a majority stake. These talks are most likely to be completed at some point during the course of next year," said the CrisTim shareholder.
He also said at the beginning of the year that, when it was no longer possible to develop the business by reinvesting profits and attracting bank loans, the company would seek the support of an investment fund.
The local market of charcuterie products, which is estimated to stand at around one billion euros, is expected to increase by 10% this year against 2006, amid the development of retail chains and an increase in the production capacities of the main charcuterie producers on the market.
Currently, the majority of companies in the local charcuterie industry are family businesses, with the biggest players including CrisTim, Aldis, Caroli, Angst and Elit. The only multinational division on this segment is Tabco-Campofrio.
Radu Timis created CrisTim in 1992, with the company initially owning a food kiosk covering 12 square metres in the Militari district of Bucharest and Radu and Cristina Timis as the only staff.
CrisTim posted consolidated turnover worth 118 million euros last year, along with an operating margin of 11%, down from 14% in 2005, owing to heavier investments in production. According to estimates made by CrisTim officials, the company, which was valued at approximately 140 million euros last year, could post a consolidated turnover worth 130 million euros this year.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
