:. Food Industry News

Categories: Mergers and Acquisitions

US Investment Fund Buys 70% Stake in Romanian Dairy Producer Covalact

Source: FLEXNEWS
08/08/2007

8 August 2007 - US investment fund SigmaBleyzer has reportedly acquired a 70% stake in Romanian dairy producer Covalact for 7 million euro, says Romania's business media.

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Neither of the companies wished to reveal the value of the transaction or of the stake acquired, but, according to market sources, Covalact is valued at around 10 million euro. Furthermore, the same sources claims SigmaBleyzer currently holds 70% of the shares of the dairy company. The transaction was estimated at approximately 7 million euro.

SigmaBleyzer did confirm it had acquired a majority stake: "We acquired the majority stake in Covalact because the dairy industry is poised for constant growth in Romania, and also because it is one of the sectors the fund is interested in," a SigmaBleyzer spokesperson told one Romanian newspaper.



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