Wimm-Bill-Dann Foods Acquires Dairy Plant in Perm Region

The acquisition of Kungur Dairy Plant is in line with Wimm-Bill-Dann’s declared strategy of expanding its business through the selective acquisitions of successful companies with strong market positions.

12/28/2010 --- Wimm-Bill-Dann Foods OJSC, the leading Russian manufacturer of healthy food and beverage products, announced the acquisition of Kungur Dairy Plant in Perm region. The plant is the region’s leading dairy producer and is recognized as one of Russia’s most technologically advanced dairy facilities. The transaction is subject to preliminary approval by the Russian Federal Antimonopoly Service.

The acquisition of Kungur Dairy Plant is in line with Wimm-Bill-Dann’s declared strategy of expanding its business through the selective acquisitions of successful companies with strong market positions, established brand portfolios and a sustainable raw-materials base. Situated in the southeastern part of Perm region, Kungur has excellent access to raw materials in the region. The plant supplies the wider region and its products enjoy strong consumer recognition in both Sverdlovsk and Chelyabinsk regions.

“This acquisition in Perm region is in line with our strategy of expanding eastward and increasing our leading positions in the fast-growing Urals,” said Silviu Popovich, Head of the WBD Foods business unit, commenting on the transaction. “We are buying a state-of-the-art facility in the right location with a highly skilled and experienced local team that will significantly strengthen our market presence in a key geography for us. Its high quality products represent an excellent fit with our existing portfolio. The Kungur plant complements our existing manufacturing base and moves us to a whole new level in the Urals in terms of competitiveness and market reach.”

Kungur Dairy Plant possesses modern European equipment and an in-house laboratory complex meeting all Russian and European quality standards. The plant has achieved a substantial improvement in the quality of milk, sour cream, traditional curd, ryazhenka, yogurt, fruit curds and other products through a high degree of production automation. Kungur Dairy Plant has long-term relationships with its local raw-materials suppliers, helping to ensure both the high quality and reliability of supplies.