Nestle and Dr.Oetker to buy Centroproizvod?

Citing some well-informed business circles, the weekly magazine NIN writes that Nestle and Dr. Oetker are interested in buying Centroproizvod.

Nestle is interested in Centroproizvod's confectionery unit, while Dr. Oetker would like to buy the spice production unit of that company. According to unofficial information, preparations for completion of that transaction are close to end, while the total selling price should be about 90 million euros.

Olivera Papic, the Marketing Director at Centroproizvod, says that that company is in the process of development of strategy and plans.

- We are considering various possibilities such as strategic partnership, acquisition and regionalization. It is for sure that we will choose what's the best for the company and its growth and development. We are in contact with several potential strategic partners - she said.

Centroproizvod was privatized in 2004 and the buyer was Darko Bajcetic who previously sold Doncafe to the Israeli company Elite. He paid about 16 million euros for Centroproizvod and, according to the records kept by the media, the new owner has invested about 20 million euros in modernization of the company over the last six years.

Centroproizvod's product portfolio includes about 300 products, which are produced at the plants Cipiripi in Surcin, Aroma in Cukarica, and Bilje in Bavaniste near Kovin, spanning a total of about 35,000 square meters.

The company has about 700 employees and registered a revenue of 43 million euros in 2008. It exports products to the markets of Macedonia, Montenegro, Bosnia and Herzegovina, Australia, Canada, the USA, Switzerland, Albania, Romania, and Bulgaria.