This was the largest transaction in the Romanian food retail sector. The fund had announced its intention to sell this summer, and prepared to exit the businesses of the Siveco software provider and the Macon Deva construction material producer, according to the Vice President of PEF V, Cristian Nacu. These decisions were made due to the fact that the business target has been met and the above-mentioned companies increased sufficiently to allow the fund’s initial investments to rise on average 2.5 times.
PEF V acquired Artima in 2005 for some €17 mln, and also took over debts worth €4 mln. Artima budgeted €1.5 mln worth of investments to open at least eight commercial units in 2007.
Artima has a 20-store network and registered a turnover worth €19 mln in the first quarter of 2007, up 16 percent year-on-year. In 2006, the company posted €78.2 mln in turnover, surging 40 percent from 2005, and €1.4 mln worth of profit, a 37 percent annual drop.
The Romanian supermarket market is divided between Billa, Artima, Mega Image, La Fourmi, and Spar, while discount supermarkets such as Plus Discount, Profi, Penny Market, and other small chains have developed locally.
The value of the Romanian fast-moving consumer goods (FMCG) market is estimated at €40 mln in 2007, a 17 percent annual increase, according to the Deloitte Romania consultancy company. Modern commercial networks will account for more than 40 percent of FMCG sales, according to a study by the MEMRB Retail Tracking Services market research company.
