Vadim Dymov has invested $500 million in his meat processing production over the last five years, experts estimate.
Photo: Mikhail Razuvaev
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Sausage Maker Dymov Buys Compomos Plant in Moscow
Sausage magnate Vadim Dymov is buying a plant in Moscow from Spanish Campofrio Alimentacion for an estimated $50 million. Mr. Dymov, which has invested over $500 million in meat business, apparently aims to enter Russia’s top three of meat processing companies.
Several investment bankers reported Tuesday that Vadim Dymov and Campofrio Alimentacion had signed a due diligence deal. The businessman confirmed the information, saying that that the agreement opens the door to the purchase of one of Campofrio’s production facilities in Moscow. The parties will decide on the value of the deal following audit at the plant. Alexey Soshnikov, director general of Dymov Sausage Works, reported the company is buying the Campomos-1 plant.
Campofrio declined to comment the deal. Meanwhile, Campofrio’s Russian director said late last year that one of its two plants, Camomos-1, would be put up for sale while the capacity of the other would be increased.
Dmitry Kolokatov, director general at Agrika, estimates the plant to be worth up to $50 million.
Campomos was set up in 1990 to become Moscow’s third-largest meat processing plant. Campomos’s two plants output some 45,000 tons of sausages and other meat products a year. The company’s turnover in 2006 stood at $127 million.
Dymov Sausage Works produced 18,000 tons of meat products in 2006, reaping 58.5 million rubles in net profits.
The purchase of Campomos-1 will become Vadim Dymov’s third meat processing acquisition this year. In May, his company bought a pig farm in Russia’s south. In June, Dymov Works snapped up a meat processing plant outside Moscow.
Those in the market estimate that Mr. Dymov has invested some $500 million in meat production over the past five years with an eye to enter Russia’s top three of meat producers. Analysts say that a merger with a second-tier meat holding is likely to send the businessman to number two or number three on Russia’s list of major sausage producers.
www.kommersant.com
All the Article in Russian as of July 18, 2007
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