The acquisition marks French Lactalis Group’s third Ukrainian purchase and a continued wave of international conglomerates absorbing local firms.

This flurry of purchases is prevalent in Ukraine’s fastest-growing sectors, including banking, metal production, and fast-moving consumer goods, among others.

“It is important to obtain a critical size of the Ukrainian market and we will have a better geographic coverage within the Fanni network,” Lactalis External Communications Director Luc Morelon said.

“Ukraine is a country with good potential for fresh dairy products and Fanni is a well-known brand.”

Lactalis Group, whose annual sales totaled almost $11 billion in 2006, will add 1 percent to its global sales with the acquisition of Molochniy Dom.

The Ukrainian producer, based in Pavlohrad in Dnipropetrovsk Region, boasts about $50 million in annual sales and produces 35,000 tons of dairy products a year.

The acquisition will allow Lactalis to become one of the top three dairy producers in Ukraine, according to the company’s press release.

Source: KPNews.com