US-based Smithfield Group will take over Agroalim Distribution and Frigorifer Tulcea in full by 2008. The two businesses were developed by Lebanese national Mounir Halawani, one of the leading players in the domestic foods industry.
This move will enable Smithfield, one of the most powerful groups in the international foods industry, with turnover in excess of 11 billion dollars, to have an integrated structure in Romania, comprising of processing, production, storage and distribution.
"Our interest in Agroalim Distribution and Frigorifer Tulcea will gradually increase to 100% over the next three yeas," Michael H. Cole, vice-president of Smithfield Foods Inc. told ZIARUL FINANCIAR.
Halawani last year sold 50% in both Agroalim Distribution, one of the top three foods distributors on the domestic market, and Frigorifer Tulcea, the largest cold storage facility in the country, with a capacity of 16,000 tonnes. The transaction amounted to 15 million dollars (12 million euros), market sources say.
Taking full control of the two companies could amount to several tens of millions of euros, considering that Agroalim Distribution's business alone almost doubled in euros in 2005, while Frigorifer expects similar results this year.
Agroalim Distribution last year posted more than 52 million euros in turnover, an increase of 80% from 2004. Gross profit rose from 0.8 million euros in 2004 to 1.1 million euros in 2005. The company expects turnover to go up by 20% this year.
Frigorifer's business could double this year to about 8 million euros, as its shareholders invested 7 million euros in building the first frozen vegetable factory in the country. The factory started manufacturing operations this month. Its products will be branded as Casa Taraneasca.
With the fast-paced growth of the business of the two companies, the value of the deal
