French group Lactalis acquired the Romanian dairy producer Covalact, market sources told Profit.ro.

The agreement between Lactalis and American private investment fund SigmaBleyzer Southeast European Fund IV, which controls Covalact, was signed last week. The deal needs the approval of the Romanian Competition Council.

The value of this deal was over EUR 40 million, according to sources quoted by the M&A journal Mirsanu.ro.

Covalact had a turnover of EUR 44.9 million and a net profit of 1.3 million, with 357 employees in 2015.

This summer, Lactalis also took over Albalact, the largest dairy producer in Romania, a deal that turned the French group into the leader of the local dairy market. Lactalis paid some EUR 72 million to buy over 90% of Albalact’s shares from Romanian investors Petru and Raul Ciurtin, private equity fund RC2, and other investors on the Bucharest Stock Exchange.

Previously, Lactalis ranked seventh on the market with the company Dorna Lactate. Dorna Lactate, which owns the brand LaDorna, was the first acquisition of the French group on the Romanian market in 2008.

Lactalis owns several international brands such as President, Parmalat, and Galbani.

editor@romania-insider.com

(photo source: Covalact de Tara on Facebook)