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Croatian firm buys Serbian dairy with EUR17 mln EBRD loan
Deal part of increasing effort to promote cross-border cooperation
In line with one of its top priorities – promoting regional integration and
cross-border cooperation – the EBRD is lending the Croatian dairy company Lura
d.d. €17 million to fund the acquisition of a dairy producer in Serbia and
Montenegro and selected investments in its core operations in Croatia.
Alongside the EBRD, DEG – the German Investment and Development Company – will
lend a further €5 million.
The loan is a part of an €60 million financing package which includes equity
and debt financing for the Croatian company, which has embarked on a five-year
plan to strengthen its position as the largest dairy company in the region.
The rest of the financing package, which may be raised in the future from
EBRD, DEG and private co-investors, will be used for acquisitions and related
investments. Entering new markets will allow the company to bring economies of
scale to its manufacturing base and provide opportunities to broaden markets
for its products and brands.
Lura’s strategy of regional expansion is promoting the economic integration
among neighbouring countries, which should contribute to longer-term political
stability in the region. Zeljko Peric, CEO of Lura, said the project provides
important support for Lura’s development plans and its growth into a modern
regional company. It also supports other company projects as a basis for
long-term growth and competitiveness.
Hans Christian Jacobsen, EBRD Director of Agribusiness, said the project will
enable the Bank to support Lura’s strategy. It will also help the company
further improve its operations through implementation of SAP and other
cost-efficiency measures as part of its rationalisation programme..
Lura is the largest dairy company in the region, with a leading market share
in Croatia, and sales of HRK1.9 billion (€253 million) in 2003 split among
dairy products, soft drinks, bakery/snacks and transport services. Popular
brands for dairy products include DUKAT, ab kultura, BioAktiv, Frutisima,
Yogsi, Dukatino, Brzo & Fino and Dukatela. Its main cheese brand is SIRELA,
while the leading brands for soft drinks include VO?KO, BONO, NARA and INKA.
Lura has the rights to bottle, sell and distribute Pepsi, Pepsi Light, Pepsi
Twist, Mirinda and 7Up soft drink brands for Croatia.
The EBRD signed its first deal in Croatia in 1994 and has since invested more
than €1 billion in the country, mobilising a further €2.4 billion from its
business partners. The EBRD has invested €3.25 billion in more than 202
agribusiness projects across central and eastern Europe and the CIS. In
Croatia, the EBRD’s cumulative investment stands at over €1.5 billion through
64 projects.
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