Heinz acquires a majority stake in Russia’s Petrosoyuz
Petrosoyuz is a leading Russian maker of ketchup, condiments and sauces.
04/05/05 H.J. Heinz Company has announced that its European business has completed a transaction that will make Heinz a majority owner of Petrosoyuz, a leading Russian maker of ketchup, condiments and sauces, through the formation of a new joint venture company to market ketchup and other products in Russia and neighboring Eastern European nations.
Petrosoyuz has annual revenue of approximately US $140 million, more than 2,000 employees and three manufacturing plants in St. Petersburg, Otradnoe and Ivanovo. Those factories and the Heinz baby food factory in Georgievsk will become part of the joint venture company.
Petrosoyuz's business includes famous local brands such as Picador, Derevenskoe, Mechta Hoziayki and Moya Semya. Petrosoyuz has number one market positions in Mayonnaise and Spreads/Margarines, with shares of 19% and 59.5% respectively, and a number two position for Ketchup with a 23.7% market share. The company was established in 1990.
Financial terms of the joint venture agreement were not released. The transaction was completed on April 28, following approval from the Federal Anti-Monopoly Service of the Russian Federation.
