Russian Siberian Agrarian Holding purchased Italian Bassanin

Updated April 16, 2008

   The Siberian Agrarian Holding Group of Companies (SAHO) purchased 70% stocks of one of the leading Italian producers of bread-baking equipment - Bassanina Company. Also SAHO purchased 70% stocks of another Italian company Mechanisa Marcon that specializes in metal working and components production for bread-baking equipment.

   As it is marked in the SAHO press-release, the holding develops in terms of vertical integration principle - from wheat production to bread selling. Previous year the holding started to construct the federal chain of Hlebnitsa bread-baking plants (it is planned to put into operation around 150 bread-baking plants in Russia). In future the equipment of bread-baking plants is going to be maintained and upgraded. "Following the vertical integration logic to control pricing and equipment quality, the SAHO management has taken the decision to purchase one of the Italian producers. We opted for Italy exactly, because this country is one of the world leaders in the bread-baking technologies area. Moreover, SAHO bread-baking enterprises already have enough experience in using the Italian equipment", is marked in the release.

   The transaction has been prepared for 9 months. According to the results of talks, the terms of Bassanina Company have become the most attractive for SAHO. This company is well-known on the European, America, African, Near Eastern and CIS markets as the producer of premium bread-baking equipment. Bassanina activity priorities are oven production as the main unit in bread production. Until recently the company was a 100% family-owned enterprise. The main stockholder and manager was Juseppe Marcon. He has controlled Mechanisa Marson Company that is engaged in metal working. Bassanina is the main customer of Mechanisa Marson. Both enterprises are located in Bassano Del Grappa town, in the industrially developed north of Italy, between Verona and Venice

   In terms of the contract the transaction sum is not exposed. To purchase these enterprises SAHO has used 30% of private funds and 70% of necessary sum it has taken in the Italian bank Unicredit. SAHO is not intended to change the marketing policy of the companies radically after the purchase of 70% stocks. Bassanina and Mechanica Marcon top-management keep their posts. It is planned to strengthen the commercial services of the enterprises to expand sales geography. Moreover, SAHO supports Bassanina management intentions to increase the range of products and production volumes.

   Siberian Agrarian Holding comprises 13 agricultural enterprises in the Novosibirsk and Rostov regions, subsidiary agrarian holdings in Tula and Ulyanovsk regions, six elevators and grain reception points in Novosibirsk, Omsk, Tula and Ulyanovsk regions, chemical factory SAHO-Chimprom in Kuibyshev (Novosibirsk region) and the sale chain of the federal scale. 13 SAHO-owned bakeries located in Novosibirsk, Moscow, Tula and Omsk regions produce bread and confectionary under the Hlebnitsa trademark.