Nutritek Goes for Milk to Ukraine

MOSCOW, Russia -- Russia’s Nutritek Group is en route to acquire a majority stake in Ukrainian largest baby-food maker Khorolsky Concentrated Milk Plant, authorized by the agreement of intent sealed in late April. In case of success, Khorolsky enterprise will be the second company purchased by Nutritek in the countries of the former Soviet Union during the recent half a year. The experts say geographical expansion is the only way for the companies similar to Nutritek to get access to milk resources.

The assets of Nutritek Group are split into two divisions – dairy and baby-food. 2004 net profit stood at $13.9 million, revenues – $169.8 million, EBITDA – $28.6 million. Core holders of Nutrinvestholding that is the head company for the Group are Trade Estate (31 percent), Accord Asset Management (19 percent), Spektr (19 percent), Inter Consult (18 percent), Uralsib Depository Co. (13 percent).

Khorolsky Concentrated Milk Plant, in the Poltava Region, is Ukraine's largest maker of evaporated milk formula. Monthly production stands at 200 tons to 250 tons depending on the season. The plant also produces full cream powder, butter and sour-milk products. The key brands are Malyutka, Malysh, Femilak. The annual turnover is estimated at $6 million to $7 million.

It was announced Tuesday that Nutritek sealed an agreement of intent in respect of Khorolsky Plant and would pile up a majority stake in it by buying out the stocks from its private holders. Although the deal value has never been disclosed, the experts estimate it at between $10 million to $15 million. The deal is expected to be finalized this summer, Nutritek said in the investment memorandum.

Source: Kommersant