Unilever Acquires Leading Russian Sauces Business Baltimor
The acquisition, which follows Unilever's purchase of Russia's leading ice cream business, Inmarko in 2008 and its commitment to build a state-of-the-art food production facility in Tula, further consolidates the position of Unilever's business in Russia.
29/04/09 Unilever has announced its intention to acquire Baltimor Holding ZAO's sauces business, the leading ketchup business in Russia. The acquisition will further strengthen Unilever’s existing dressings portfolio and competitive position in Russia, one of its priority countries.
The acquisition, which follows Unilever's purchase of Russia's leading ice cream business, Inmarko in 2008 and its commitment to build a state-of-the-art food production facility in Tula, further consolidates the position of Unilever's business in Russia.
Vindi Banga, Unilever's President of Foods and Home & Personal Care, said: "Russia is a key market for Unilever, and we believe that the acquisition of Baltimor, which is already a strong ketchup brand in the region, will strengthen our position further. Our world-class research and development expertise and knowledge of the foods business coupled with Baltimor's local strengths, can significantly enhance our position in the Russian ketchup and dressings market."
The acquisition includes ketchup, mayonnaise and tomato paste business under the Baltimor, Pomo d' Oro and Vostochniy Gourmand brands – accounting for annual turnover of around €70 million – and a production facility at Kolpino, near St. Petersburg. It excludes Baltimor's branded vegetables, condiment, preserve and juices business and production facilities at Krasnodar and Khabarovsk.
The acquisition consideration is made on a cash and debt free basis and is not material to Unilever overall. The transaction is subject to regulatory approval.
Baltimor Holding was founded in 1995 in St. Petersburg and over the last 13 years it has become the number 1 ketchup manufacturer in Russia. Today, the company has 3 manufacturing and production sites located in Kolpino near St Petersburg, Krasnodar, and Khabarovsk.
The company's brand portfolio includes: Baltimor ketchup, mayonnaise, tomato paste and other vegetable condiments and preserves, 8 Ovoschey vegetable juices and nectars, Makosh' juices, compotes, frozen fruit and berries, Pomo d'Oro ketchup and Vostochniy Gourmand ketchup.
The production unit will compliment the existing Unilever network of factories in Moscow, Novosibirsk, Omsk, Tula, and St Petersburg itself, to supply products primarily for the Russian market.
Unilever has operated in Russia since 1992 and has 7 manufacturing and production sites: Moscow (spreads and crème bonjour), St. Petersburg (home care, personal care and tea), Tula (dressings, savory, food ingredients) and ice cream production plants in Tula, Novosibirsk and Omsk and more than 160 representative offices across the country.
The company's brand portfolio in Russia includes: Beseda, Becel, Brooke Bond, Calvé, Hellmann's, Knorr, and Lipton, together with Axe, Cif, Clear, Domestos, Dove, Rexona, Sunsilk and Timotei. With the acquisition of Inmarko, the leading Russian ice cream producer, in 2008 company's portfolio also now includes the Ekzo, Magnat, San-Cremo, Torzestvo ice cream brands, amongst others.
Unilever has invested close to $1 billion in its business in Russia and now employs more than 6,500 people across the country.
