NEW YORK & MOSCOW--()--Arco International Group, an American-based and emerging markets alternative investments firm, today announced it has signed and reached an agreement for the acquisition of Russian agro-production corporation, Stoilenskaya Niva. The company is a leader among bread manufacturers in the Russian market. It holds the third position on flour production and sixth position on confectionary production volume. It predominately operates in the Belgorod, Voronezh, Kursk and Smolensk regions. Currently, the company has more than 30 enterprises with approximately 10,000 employees, dealing with production and processing of agro-products.
“We are very excited about the Stoilenskaya Niva acquisition”
"We are very excited about the Stoilenskaya Niva acquisition," stated Francesco Piovanetti, CEO of Arco International Group. "This will allow our fund and asset management team to continue to strategically grow the company and additionally leverage its position as a leader in the bread and bakery products categories while expanding our product offering into the growing specialty bakery sector. The company is truly unique in terms of visionary leadership, product taste and quality, brand authenticity, bakery capabilities, and potential for growth.”
“Our interest in Unicor’s businesses was initially drawn by its quality assets in the real estate sector. However, in April 2012, our commercial proposal was substantially outbid by one of the Russian development groups. Today, we are delighted to announce that our interest has materialized in the acquisition of the agriculture segment of Unicor’s business,” added Mr. Piovanetti.
Pavel Lysenko, President of Unicor Management Company, stated: “As we thought about the future of the company, we wanted to find a partner with similar values who would continue to build on our previous accomplishments. Francesco and his team are a very unique financial and private equity organization, and we think it will best serve our customers, stakeholders and the people who helped build this company.”
Earlier in 2011, Bidzina Ivanishvili, owner and founder of Group Unicor, stated that he will be fully exiting the business in Russia to tend to other non-business personal affairs. To date, Stoilenskaya Niva was the last remaining business interest of the group in Russia.
About Stoilenskaya Niva
“Stoylenskaya Niva” agro-industrial company was founded in 2000 and currently is one of the largest holding companies of agro-industrial sector of the country. Stoylenskaya Niva holds the first position on total volumes of breadstuff produced, the 3rd position on flour production, the 6th position on volumes of confectionary products.
About Arco International Group
Arco International Group is an American-based asset management firm that engages in mid-market commercial, infrastructure and real estate activities in select emerging markets.
Statements contained in this press release that are not historical facts are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Other factors that may cause actual results to differ from the forward-looking statements contained in this release and that may affect the company's prospects in general include, but are not limited to, (a) competitive conditions in the baked foods industry, including promotional and price competition, (b) changes in consumer demand for our products, (c) the success of productivity improvements and new product introductions, (d) a significant reduction in business with any of our major customers including a reduction from adverse developments in any of our customer's business, (e) fluctuations in commodity pricing, (f) our ability to fully integrate recent acquisitions into our business, and (g) our ability to achieve cash flow from capital expenditures and acquisitions and the availability of new acquisitions that build shareholder value. In addition, our results may also be affected by general factors such as economic and business conditions (including the baked foods markets), interest and inflation rates and such other factors.