Investment fund Société Générale Romania Fund (SGRF) has sold its 20% stake in dairy group LaDorna to the company's founder - businessman Jean Valvis, thus ending one of the most spectacular financing deals on the Romanian market.
SGRF entered the Dorna business in 1998, contributing some 4-5 million dollars to the growth of the mineral water and dairy company, founded by Greek-Swiss businessman Jean Valvis and his business partner, Hans Bertschmann.
At the end of last year, SGRF (which owned 20% in the group), together with Valvis and Bertschmann sold the mineral water division (Dorna Apemin) to American giant Coca-Cola, for $39 million.
After the sale of the mineral water company, SGRF was left with a 20% stake in Dorna Lactate (Dorna Dairy) and Dorna Branzeturi (Dorna Cheese), the main companies of the LaDorna dairy division.
"We bought, with approval from Mr. Bertschmann, the shares held by Société Générale Romania Fund in the two companies. The fund stayed with us for five years and we all stood to gain from its participation in Dorna," Jean Valvis told Ziarul Financiar.
The businessman would not disclose the deal's worth, which has been estimated at several million dollars.
Thus, following the Valvis-SGRF transaction, Dorna has become one of the most profitable investments of a private equity fund on the Romanian market, as SGRF is estimated to have tripled its money in five years.
SGRF officials would not comment on the deal.
The dairy market is highly fragmented in Romania, despite the presence of international strategic investors (Danone, Hochland, Friesland), which have built new plants or bought several local competitors in the past few years. LaDorna, together with Covalact and Prodlacta, is one of the main market players that are not owned by multinationals. This has sparked rumours that, after selling Dorna Apemin, the group's shareholders will look to sell the dairy division, as well.
"I am not planning to sell the dairy business; on the contrary, I want to make it bigger. And the fact that I bought the fund's stake should be proof enough. I believe that agriculture and the food industry have great potential in Romania, and this can only benefit LaDorna," Jean Valvis said.
LaDorna group comprises Dorna Lactate, Dorna Branzeturi, Dorna SA, LaDorna Cheese, LaDorna Agri and Narcisa Production.
At the beginning of 2003, Jean Valvis announced that Dorna Lactate and Dorna Branzeturi would invest $6-8m to broaden the range of products, develop the farms and modernise the milk collecting operations.
laurentiu.ispir@zf.ro
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
