Cargill on the acquisition trail
purchase the shares of Romanian grain silo company Comcereal
Alexandria. The announcement follows approval for the tender by the
Romanian Securities Commission.
The company says that the deal will strengthen Cargill's current investments in Romania, which already include two existing grain silos. Cargill believes that Comcereal Alexandria's comprehensive network of grain storage facilities in the Romanian grain belt in the Teleorman, Giurgiu, Ialomita and Galati regions will perfectly complement these operations.
"Comcereal is a well run entity that has an excellent geographic spread of grain silos in Romania," said Cargill general manager for Romania Rod Sanderson. "We are excited about applying our global grain handling and logistical expertise to this venture. We've been active in Romania since 1996 and have developed a good understanding of the local market and a high performing team of Romanian managers who will lead this project."
Comcereal Alexandria collects, conditions and handles grains and oilseeds that are sold to domestic and export markets. The business has recently undergone a major restructuring programme designed to improve its effectiveness and efficiency. It has a workforce of 730 employees, which Cargill says will be key to the continued success of the business and instrumental in its future growth.
Comcereal Alexandria is publicly quoted on the RASDAQ, one of the Romanian stock exchanges. The majority of its shares are owned by New Century Holdings (NCH), a New York based investment fund. Following the public tender, which will close on the 14 January 2004, the deal will be subject to approval by the Romanian regulatory authorities.
The food group has been making acquisitions elsewhere. For example, the business is set to acquire Pasco Beverage Group (PBG)'s aseptic tank farm in Florida, a deal that is expected to close by 1 January 2004. The acquisition of the facility will help the company to expand its not-from-concentrate orange juice and grapefruit juice business.
"We continue to look for growth opportunities and projects like this one that will help our global fruit juice customers succeed," said Tom Abrahamson, president of Cargill Juice North America.
PBG chief executive Gary Viljoen said the sale of the tank farm is part of the company's strategy to exit the chilled business. "Pasco is now perfectly positioned both financially and operationally to focus on its core business and its frozen capabilities. Our chilled business was less than 20 per cent of our total revenues, and we are the dominant supplier of private label concentrate juice beverages for the retail industry."
Cargill is an international marketer, processor and distributor of agricultural, food, financial and industrial products and services with 98,000 employees in 61 countries. The company provides distinctive customer solutions in supply chain management, food applications, and health and nutrition.
