Private equity firm GED buys leading Bulgarian dairy company FAMA
Spanish private equity firm GED has made its entry into the Bulgarian dairy sector in third position. The firm has acquired FAMA, the country's third-largest dairy products maker by volume, for an undisclosed sum.
According to a statement issued by GED, FAMA has a 12% share of the domestic dairy market. Established in 2000, FAMA produces and distributes under its own label and also distributes international Premium brand products. The company is located in the Varna region.
In 2006, FAMA acquired the local manufacturer Serdika, which allowed the company to become the third largest manufacturer in Bulgaria. The company's estimated 2006 turnover amounts to €20 million ($27.2 million). GED intends to increase FAMA's manufacturing capacity and its product range. Moreover, GED plans to increase the distribution network of FAMA on the Black Sea coast, in Bulgaria.
GED will face competition from another leader in the sector - United Milk Company (UMC), which has also been acquired by a foreign firm. Last month, FLEXNEWS reported that Greece's Vivartia obtained the authorities' Okay for the acquisition of UMC for €18.7 million ($25.4 million). UMC is Bulgaria's leading milk producer and second largest yogurts maker. (flexnews.com)
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