Nuts about consolidation

Bakalland, the nuts and raisins producer formerly known as Uno Fresco Tradex, is planning an IPO by the end of 2006. The company wants to raise zł.25 million from the floor and spend it on further acquisitions.

"We are now in talks with three companies from the nuts-and-raisins sector. The deals should be finalized at the end of June or beginning of July, and that's when we will be able to reveal more information," Marian Owerko, CEO of Bakalland, told WBJ.

The market rumor has it that Bakalland is eying one of its two biggest competitors, Ziołopex or Kresto, but Marian Owerko did not confirm that information. Currently, the company controls some 22 percent of the nuts-and-raisins market and it is finalizing the takeover of Komosa, a nuts and raisins distributor to restaurants. Bakalland's CEO would like to attain a 30-percent share in the market.

In the fiscal year 2006 ending in June, Bakalland is planning to post revenues of zł.120 million and a zł.5 million net profit. The value of the Polish nuts-and-raisins retail market is estimated at some zł.500 million annually and it grows at a rate of five to six percent every year. Bakalland is also planning to increase its exports.

"For the time being, exports only account for five percent of our sales, the majority of which goes to Ukraine where our subsidiary is located. It is also towards the Ukrainian market that we have the biggest expectations, as in terms of size and needs it is very similar to Poland," Owerko explained.