Polish confectionery producer plans expansions

By Karen Willmer

- Last updated on GMT

Related tags: United states, Mergers and acquisitions, Eastern europe

Polish confectionery company Jutrzenka is planning acquisitions
across Central and Eastern Europe, in a bid to expand into the
emerging markets, according to the Polish media.

PMR had said the firm is currently in negotiations with six foreign potential targets with an annual turnover of between €10m and €130m. Jutrzenka look to be expanding into fast growing confectionery markets with these new acquisitions, a trend many industries are looking to enter. This follows Jutrzenka's aquisition with beverage company Hellena, with soft drinks expected in Polish stores within the next few weeks, according to PMR. The company told ConfectioneryNews.com that it became owner of Hellena's productive plant in Opatowku for 75.2m PLN (€19.6m) in a deal signed on June 28 2007. Local media says Jutrzenka will be exporting the Hellena brand to Polish residents in the USA and Canada. This follows the recent acquisition of Polish confectionery firm Gryf by French company Cemoi in order to take advantage of the trend to expand into Eastern Europe. Mars and Barry Callebaut are also confectionery companies entering into these markets. PMR said Jutrzenka will issue new shares in the fourth quarter in order to finance these acquisitions, as well as to fund a new distribution centre and expand one of its plants. Sales in the first half of 2007 were 220.9m PLN (€58.1m), according to the press. Cadbury currently holds the top position in the Polish chocolate market following its £49m (€73m) acquisition of Wedel in 1999. This follows its acquisition last week of Romania's second largest confectionery company Kandia-Excelent.

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