:. Food Industry News

Categories: Mergers and Acquisitions

Lactalis Subsidiary Dukat to Take Over Croatian Dairy Company

Source: FLEXNEWS
22/04/2008

22 April 2008 – Croatian dairy company Dukat was the only bidder in the tender for the sale of state-owned dairy company KIM, local media report.

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Dukat offered the requested minimum price of 15.8 million kuna (USD 3.5 million) for a 66.96% share in the Karlovac-based dairy. Dukat also pledged to invest 143.42 million kuna (USD 31.5 million) in KIM over the next five years, and to keep the company’s brand and core activities.

The acquisition is subject to approval by the Croatian competition watchdog.

Two additional companies were reportedly interested in the tender, Danube Foods Group and Dunay Promet, as well as two Croatian investors, but they all failed to place their bids before the April 21 deadline.

Dukat currently accounts for 40% of the Croatian dairy market. In November last year FLEXNEWS reported that the Zagreb-headquartered company had acquired Macedonian cheese producer Ideal Sipka, subject to approval by the relevant Macedonian authorities. Both the Ideal Sipka and KIM acquisitions are in line with Dukat’s strategy of expansion in southeastern Europe.



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