Correction: Icelandic translation Alfesca has agreed to acquire Le Traiteur Grec, France's leading vegetable spreadables business for an enterprise value of €19.7 million on a debt-free, cash-free basis. 1) The consideration will be satisfied through a cash payment and completion, which is subject to certain conditions, is expected to take place by mid June following the refinancing of the Group. Cash funds for the acquisition will be satisfied from this new debt facility. In the year to 31 December 2006, Le Traiteur Grec's (LTG), net sales were €12 million, having increased its sales by over 10% each year over the last three years. At the year end in 2006, LTG had net assets of €6.3 million and carried no financial debt on its balance sheet. Since its establishment in 1987, LTG has grown to become France's leading branded vegetable spreadables business. LTG's main markets are vegetable spreadables (20% market share); blini breads (3% market share) and taramasalata (3% market). LTG's sales relate solely to branded products, which are sold on the French market and mainly through hyper and super-markets similar to Blini. The businesses of LTG and Blini are highly complementary and together they will provide Alfesca with category leading position in the vegetable spreadables sector with high growth prospects to add to its already strong blini and tarama activities, which form one of Alfesca's core pillars. The deal is expected to be earnings enhancing from the first year. Xavier Govare, CEO of Alfesca said: “LTG's business is a perfect fit for Alfesca. LTG's strong position in the vegetable spreadables sector will strengthen and secure our position in this high-growth category. The acquisition will be highly complementary to our blini and spreadables pillar and will create a strong business, which we intend to drive forward by a strong focus on product development and innovation.” Further details relating the acquisition will be provided at the presentation of Alfesca's Q3 results at 08:30 am on 23 May 2007 at Nordica Hotel, Surdurlandsbraut 2, Reykjavik. Alfesca will publish its interim financial results for the third quarter of FY2007 (Jan - Mar 2007) on Tuesday 22 May after markets have closed. Alfesca will be hosting a presentation to investors, market participants and the media at 08:30 am on Wednesday 23 February at the Nordica Hotel, Reykjavik. For further information: Xavier Govare CEO T: + 354 477 7000 E: xavier.govare@alfesca.com Antony Hovanessian BDD T: + 354 477 7000 E: ah@alfesca.com 1) The purchase is €19.7 million plus net cash of €4.3 million.
CORRECTION: Announcement Published 2007-05-22 12:17:08 - Category leading Le Traiteur Grec enhances Alfesca's spreadables pillar
| Source: Alfesca hf.