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EBRD takes an equity stake in Ukraine cereal company
To support the expansion of Ukraine’s leading breakfast cereal company the European Bank for Reconstruction and Development (EBRD) today acquired a 37 per cent equity stake in Borispil food-stuffs plant. The Bank has also committed to participate in future capital increases.
The EBRD’s investment is alongside Sweden’s Cerealia, one of the most successful food groups in the Nordic region, which holds the remaining 63 per cent. The EBRD’s investment provides Borispil with much-needed working capital, which will allow the company to expand its operations in Ukraine and throughout the region. Borispil is located near Kiev and was privatised in 1997.
"The EBRD’s investment will help to develop Borispil as well as a number of small and medium-sized businesses that supply the company or distribute its products," said Hans Christian Jacobsen, Director of the EBRD’s Agribusiness team. "With the support of the EBRD and Cerealia, Borispil has an opportunity to become the leading breakfast cereal company in the region, providing high-quality, locally produced products sold at competitive prices throughout Ukraine and Russia."
Mr Jacobsen continued: "Cerealia is committed to the region. It is a leader in its field and we hope that this first joint project will lead to successful cooperation in the future "
Cerealia develops, produces and markets cereal-based foods. Cerealia views the Baltic region as a domestic market, but also exports to other parts of the world. The activities of the Cerealia Group are divided into five business areas: Flour/Mixes, Breakfast Cereals, Pasta, Fresh Bread and Unibake. A large number of well-known brands and market leaders can be found within all business areas. The Cerealia Group has 4,000 employees and operates via approximately sixty plants in Sweden, Denmark, Norway, Finland, Germany, Poland, Latvia and now Ukraine. Invoiced sales amount to approximately SEK 5.5 billion, of which 50 per cent were invoiced outside Sweden.
Cerealia is wholly owned by Svenska Lantmännen (the Swedish Farmers´ Supply and Crop Marketing Organisation), which in turn is owned by around 70,000 Swedish farmers.
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