Romanian distribution & logistics company Aquila to take over Parmafood under EUR 16.5 mln deal

Aquila, a leader in the field of integrated distribution and logistics services for consumer goods in Romania and the Republic of Moldova, said on January 11 that it signed a preliminary transaction agreement to acquire Parmafood Trading SRL and Parmafood Group Distribution SRL, two leading distributors of fast-moving consumer goods.

The total agreed price for the acquisition of both companies will be a maximum of EUR 16.5 million, from which debts will be deducted, based on a price mechanism established by the parties, the company said. The amount will be paid from Aquila’s own sources.

The agreed payment method consists of paying 80% of the total amount upon closing the transaction and 10% after 1 year, respectively 2 years from the deal’s closing.

The transaction will take place subject to obtaining the necessary approvals from the Competition Council and the Commission for the Examination of Foreign Direct Investments, and after the prior approval of the main terms and conditions by Aquila’s Extraordinary General Shareholders Meeting.

“The acquisition will allow us to expand and strengthen our presence in all distribution channels with products complementary to our activity and represents another step in consolidating the business. Completing the acquisition of Parmafood companies will allow the expansion of Aquila’s portfolio with new international and local partners,” said Cătălin Vasile, CEO of Aquila.

In his turn, Eugen Savu, majority shareholder and general manager of Parmafood, stated: “It is an important decision regarding the future of our company and comes as a confirmation of the maturity of our business model. We decided to offer continuity to the distribution business by associating with a larger player who shares our vision and values and who will create opportunities for growth and development for both our business partners and our employees.”

The Parmafood companies have a combined history of 3 decades and hold a portfolio of over 100 brands. They carry out distribution activities in HoReCa, Modern Retail, and Traditional Retail channels and operate logistic warehouses with integrated stock management systems.

Parmafood Trading SRL and Parmafood Group Distribution SRL recorded a combined turnover of RON 245.53 million in 2022 and a combined net profit of RON 15.67 million.

Aquila was founded in 1994 by the entrepreneurs Alin Adrian Dociu and Constantin Cătălin Vasile and is currently active in distribution, logistics, and transport. It has been listed on the Bucharest Stock Exchange since November 2021, following an initial public offering worth RON 367 million.

The Aquila shares (symbol AQ) are included in the Bucharest Stock Exchange reference index– BET and in the Global Micro Cap index of FTSE Russell. As of September 1, 2023, the company’s shares have also been included in the MSCI Frontier IMI and MSCI Romania IMI indices.