VIVARTIA S.A., announces the entrance of its Dairy and Beverages division in the Bulgarian dairy market, through the acquisition of 99,99% of UNITED MILK COMPANY AD (UMC) from BSF -a fund managed by GLOBAL FINANCE- and DOVERIE CAPITAL for the amount of euro 18,7 mil. The transaction will be finalized after the approval from the Bulgarian Competition Authority.
UNITED MILK COMPANY AD (www.umc.bg) is the leader in the Bulgarian milk market and holds the second place in the yoghurt market. In spring 2003, BSF took over the control of the company and completed a broad restructuring plan comprising of parallel investments in production machinery and the promotion of new products supported by fully advertised commercial brands. UMC''''s total sales for 2006 were approximately euro 17,5 mil. with an EBITDA of euro 1 mil., while total assets amount to euro 18,4 mil., with Shareholders'''' Equity of euro 6,7 mil. and Net Debt of euro 7 mil.
With the above acquisition, VIVARTIA begins to implement its strategic plan for expansion in Southeastern Europe in the dairy and beverages division aiming at leading market shares and to synergies with the bakery & pastry and the frozen food divisions that are already active in the Bulgarian market. VIVARTIA''s target is the development of the dairy market in Bulgaria, the introduction of new products and the materialization of above synergies, which are expected within the following three years to improve significantly the financials of UNITED MILK COMPANY.