French Dairy Boosts Stake in Ukraine

UKRAINE - The world’s second largest dairy group inked an agreement in late October to acquire one of Ukraine’s leading dairy producers, Molochniy Dom (Fanni brand), for an undisclosed amount and stake.
calendar icon 8 November 2007
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The acquisition marks French Lactalis Group’s third Ukrainian purchase and a continued wave of international conglomerates absorbing local firms.

This flurry of purchases is prevalent in Ukraine’s fastest-growing sectors, including banking, metal production, and fast-moving consumer goods, among others.

“It is important to obtain a critical size of the Ukrainian market and we will have a better geographic coverage within the Fanni network,” Lactalis External Communications Director Luc Morelon said.

“Ukraine is a country with good potential for fresh dairy products and Fanni is a well-known brand.”

Lactalis Group, whose annual sales totaled almost $11 billion in 2006, will add 1 percent to its global sales with the acquisition of Molochniy Dom.

The Ukrainian producer, based in Pavlohrad in Dnipropetrovsk Region, boasts about $50 million in annual sales and produces 35,000 tons of dairy products a year.

The acquisition will allow Lactalis to become one of the top three dairy producers in Ukraine, according to the company’s press release.

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