ATHENS (Thomson Financial) - Greek consumer products wholesales Sarantis SA
said that it has 100 percent of Hungarian household products company Trade 90
for 2.74 million euros to expand geographically and reinforce its position in
eastern Europe.
Sarantis expects significant synergies from the acquisition because its own
packaging products division is one of its most dynamic operations with sales
totaling 65 million euros.
The Greek company currently has a unit in Hungary which is expected to turn
profitable because it will achieve critical mass using the new units
long-lasting agreements with the major key accounts, and powerful distribution
network.
The deal will be financed from Sarantis own funds and the transaction is
subject to financial and legal due diligence which should be completed by
September 15.
Trade 90 was established in 1991 and operates in the production and
distribution of food packaging products and is ranked second in Hungary in terms
of market share.
It also has export activities in Slovakia, Czech Republic, Romania and
Austria.
The Hungarian acquisition target has no debt and in 2008 sales will reach
6.5 million euros, and EBITDA should come in at 0.5 million euros.
nick.skrekas@thomsonreuters.com
ns/jfr
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