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Categories: Mergers and Acquisitions

Bonduelle 'Does Not Fear' Credit Crunch, Will Study Acquisitions Instead - CEO

Source: FLEXNEWS
08/10/2008

8 October 2008 - French vegetable producer Bonduelle believes that the current worldwide economic crisis could actually benefit to its operations.

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Yesterday, Bonduelle announced that its annual turnover for FY 2007-2008 amounted to 1.49 billion euro, an 18.9 % increase on the year. Meanwhile, operating profit on ordinary activities increased 39.5 % at 100.4 million euro.

Referring to the credit crisis, Bonduelle also said: "This situation could even open up interesting opportunities for growth. Indeed, with the acquisition of La Corbeille, which is expected to be finalized in the 4th quarter of 2008, and the implementation of agreements entered into with Gélagri for the distribution of frozen products under the distributor's brand, the group possesses the financial and human resources it would need to seize future opportunities and continue to strengthen its leading position in the buoyant prepared-vegetables market".

In an interview today, Bonduelle's CEO, Christophe Bonduelle, said that his company does not fear the credit crunch and banks would easily loan another 150-200 million euro on top of what the company has borrowed in 2007.

The CEO said that companies in the sector will be faced with financial difficulties and as a result Bonduelle will be studying more acquisition targets.

After having opened its Krasnodar facility in Russia, the company will also pursue its expansion in Eastern Europe and will open a new plant in Ukraine during the FY 09-10 year, which will have an annual production capacity of 50,000 tons and it will produce corn and peas.



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