The management of DELTA HOLDING S.A. announces that it has agreed to acquire from Mrs. Maria Hatzakou, 21% of the total shares outstanding of Mevgal S.A. for a total price of Euro 15 mio.
MEVGAL S.A. in 2005 recorded sales of Euro 176.0 mio and EBITDA of Euro 15.3 mio. It owns market shares of approximately 7.1% in the total milk market, approximately 11.4% in the yogurt and desserts market and approximately 14.4% in the packaged cheese market.DELTA has in the past been in contact with the shareholders of MEVGAL S.A., in their search "for several years" for alternative solutions to the development of the company.
Through its presence in the share capital of MEVGAL, DELTA HOLDING (Vivartia) believes it can give direct and long term solutions to the challenges the company is facing, its management and its shareholders. The dairy sector has reached its peak in terms of competition, following the creation and development of several new companies in the past decade and the activity of all companies (small and large, foreign and Greek, production companies and retailers) in all product categories. Today, the consumer has the possibility of a daily choice between hundred of different products, branded or private label, offered at a wide spectrum of prices, choices and packaging from tens of companies competing against each other.
As such, the sector is now mature and ready for cooperations and for combining forces, which will create strong companies, able to respond long term to the increasing demands of consumers and of the market itself, and to the development opportunities in S.E. Europe and the world.
DELTA HOLDING, following the merger to be called Vivartia, follows its already defined strategy to develop a group of companies with diversified activities in the food sector and which will be competitive both on a European and a world level.
Through the dairy sector of Vivartia, the interest in conquering the leadership position in the dairy products market remains strong, as strong as its commitment for the strengthening and the upgrading of the production capacity in Northern Greece. A commitment already proven with the creation of a big milk production unit in Sindos (Salonica) and the recent agreement signed for the acquisition of the milk production unit in Platy Imathias as well as other activities of the Group through Goody?s, Hellenic Catering, General Frozen Foods and Greenfood.
Note: DELTA HOLDING (Vivartia) does not acquire control over MEVGAL S.A. and as such there is no need for notification to the Competition Authority. Approval by the Competition Authority will be necessary in case DELTA HOLDING (Vivartia) agrees to acquire the majority of the shares of the company.