The local cold meats market, whose value is estimated at €1 billion, continues to attract investment funds, despite the fact that sales on the black market make up 50 percent of the total.
“There are plenty of companies and share packages for sale. (…) There is presently an investment fund interested in a few brands, and I estimate that we will have a big surprise next spring, namely the acquisition this investor will make,” the President of the Romanian Meat Association, Sorin Minea, told Business Standard.
Small insolvent enterprises seem to be the main target of investors. “About 30 percent of the meat industry processors are in this situation, but only 15 percent have the chance of initiating negotiations with the prospect of sale. This is because both investment funds and large players in the industry are looking for companies that invested in modernizing units or that own brands which could bring them market share,” said Dragoş Frumosu, President of the National Federation of Trade Unions in the Food Industry (FNSIA).
“At present [companies] are testing the market, including large players on this market, but it will be a while before these reach the negotiation phase. This testing targets both possible acquisitions and mergers,” said Valentin Blănaru, Chief Executive Officer of the Association of Employers in the Milk Industry (APRIL). The value of the dairy product market is estimated at €1 bln, based on market data.
Another interesting industry in terms of acquisitions is that of canned fruits and vegetables, estimated to be worth €700 million, as this market is shared by only a few players. “The market is in an early development stage. There are few producers, so this is a sector with potential and with the capacity to attract investors,” Frumosu added. There are 89 fruit and vegetable processing units in Romania, with an annual processing capacity of 300,000 tons. Main processors are Conserv Buftea, Rădăcini din Feteşti, Contect Tecuci, Râureni, Hame, and Leader International.
Even the beer industry could bring some surprises, a sector dominated by four major players who have either acquired and modernized local factories or finalized Greenfield projects.
