French group Lactalis pays EUR 76 mln for Romanian dairy group Albalact

French group Lactalis is willing to pay EUR 76 million to get full control of local dairy producer Albalact. Romanian entrepreneur Raul Ciurtin, whose family owns 41% of Albalact, will get EUR 31.3 million while private equity fund RC2, which has a 25% stake, will get EUR 19.4 million. Lactalis is willing to pay RON 0.52 (EUR 0.1) per share to buy 100% Albalact and have the company delisted from the Bucharest Stock Exchange. The price is 38% higher than the price at which Albalact shares were trading on the Bucharest Stock Exchange on January 28 when Lactalis announced its plan to take over the company. Lactalis, one of the biggest dairy producers in the world with an annual turnover of EUR 17 billion, announced at the end of January that it had signed a contract with the local investor Raul Ciurtin, his family and the investment fund RC2, to buy their 70.3% stake in Albalact. The French group then had to negotiate with the rest of the shareholders, so it could completely take over the company. This is the French group’s second biggest acquisition in Romania. Lactalis also bought the La Dorna dairy producer from Jean Valvis, in 2008. The transaction was valued at EUR 70-90 million at that time. Since then, Lactalis has closed several of the local factories and has recorded losses almost every year. The group currently owns four companies in Romania (Dorna Lactate, Dorna SA, Parmalat Romania, Lactalis Romania), which had sales of almost EUR 70 million in 2014. Its local brand portfolio includes LaDorna milk and the President butter, as well as the Santal juice. Italian Giampaolo Manzonetto currently manages Lactalis business in Romania. Albalact, which operates a dairy factory in Oajda, near Alba Iulia, is the second biggest local dairy producer, after Danone, with a turnover of EUR 101 million in 2015. The company had a net profit of EUR 3 million last year. Albalact also owns the Raraul dairy factory in Campulung Moldovenesc, which had sales of EUR 13.6 million in 2015. The two companies have over 800 employees. Albalact’s portfolio includes several brands, such as Zuzu, Fulga, Albalact, Raraul, and Poiana Florilor. Deal of the year in Romania’s food industry: French group Lactalis will buy dairy producer Albalact Romanian dairy group Albalact’s turnover goes over EUR 100 mln editor@romania-insider.com