Lactalis buys Romanian dairy producer Covalact | Progresiv

Lactalis continues its development in Romania with an agreement for the acquisition of the Covalact dairy company, which should be validated during the first quarter of 2017.

After LaDorna operation in 2008, followed in 2011 by Parmalat fruits juice business, and few months ago Albalact acquisition, Covalact completes the Group portfolio in the country and strengthens its local leadership.

Covalact is one of the biggest dairy producers of Romania with almost 50 years of experience in manufacturing dairies. The company has 560 employees working in Sfantu Gheorghe and Miercurea Ciuc factories.

In June 2007, Covalact’s majority stake was taken over by Southeast European Fund IV, managed by SigmaBleyzer. In April 2008, Primulact and Lactate Harghita were purchased by Covalact. Since the acquisition to present, SigmaBleyzer has invested almost  EUR 18 million.

Covalact reported in 2015 a turnover of EUR 44.9 million and a net profit of EUR 1.3 million. Covalact has a consolidated market share of 5.5 percent, according to the latest data available.

This transaction is subject to the approval of the competition authorities. Covalact will be part of Lactalis Fromages Europe (LFE) division.