October 2 2007, 09:31

To buy Polish Hortex just for EUR 300 mln.?

According to information of Gazeta Gielda Parkiet, the foundation Argan Capital, chosen by the Bank of America to manage the largest Polish fruit&vegetable company Hortex, is possibly preparing to sell the company.

We'd like to remind that Hortex is the largest producer of flash frozen vegetables and fruits in Poland - it controls around one half of the market of this country. Also, Hortex is the largest player of Russian market of frozen vegetables, fruits and berries. According to the experts' evaluations, this company also occupies around one half of Russian market. In Poland Hortex is also one of the leaders of vegetable and fruit juice market; the value of its brand was estimated to be worth to nearly $50 mln. past year (42% more expensive than in the previous year).

The source informs, the owner can sell Hortex for EUR 300 mln. To the opinion of the analysts of CIS produce business periodical "Agrooglyad: Vegetables and Fruits" weekly, Bonduelle is one of the companies which may be interested to purchase Hortex; this way Bonduelle will be able to consolidate its positions on frozen fruit&vegetable market in Eastern Europe. In future the company may sell its juice business to someone of the world leading producers because this business is not a priority for the company. At the same time, to our opinion, there is a little possibility of the company's sales to some of the world leaders of juice market (Coca-Cola, PepsiCo), because frozen vegetables, fruits and berries constitute a too great specific weight in the company's revenues (this business is not traditional for these firms). Although the purchase of such asset with the following allocation of one of the business directions and the further sales may also have perspectives.

We'd like to remind that, for more than a year Hortex has been considering the possibility to construct own plant in Russia to produce frozen fruits and vegetables; however, the decision has not been made yet because of various reasons. You will learn the detailed perspectives of the market of flash frozen fruits and vegetables during CIS largest international conferences: "Fruit&Vegetable Business of Russia. Wealth of New Opportunities" and "Fruits and Vegetables of Ukraine 2007. Meeting New Leader".