Moscow, Russia – October 30, 2006 – Wimm-Bill-Dann Foods [NYSE: WBD], Russia’s leading producer of food and beverage products, today signed an agreement to acquire an Omsk-based dairy producer Manros, the largest independent dairy manufacturer in Siberia and the Far East. The completion of the transaction is subject to the approval of the Federal Anti-Monopoly Service of the Russian Federation. This deal is in line with Wimm-Bill-Dann’s declared strategy of expanding its business through the selective acquisition of successful companies which occupy leading market positions in their respective regions and possess strong brand portfolios.
Manros is the largest dairy producer in Omsk Region and one of the largest dairy enterprises in Siberia and the Far East, its annual production capacity stands at around 65,000 tons. Manros is made up of four plants, whose combined processing capacity is 720 tons a day. Manros produces milk, sour cream, yogurts, cottage cheese, kefir and other dairy products under “Na zdorovie”, “Molochnaya Dolina” and “Vkusnika” brands.
Commentingonthedeal, TonyMaher, ChiefExecutiveOfficerofWimm-Bill-Dann, said: “The acquisition of such a strong regional player as the Omsk dairy plant Manros is fully in line with our strategic goal of building a sizeable and efficient health-oriented food company. The Manros acquisition further strengthens Wimm-Bill-Dann’s market position in the fast-growing Siberian region, where continued economic growth is translating into ever growing demand across our proposition of healthy products aimed at the entire family. Manros represents one of the largest dairy plants in Siberia and will significantly enhance our ability to meet our customers’ needs for trusted Wimm-Bill-Dann products, whilst adding successful local brands to our portfolio. We continue to study opportunities across the entire CIS for carefully selected acquisitions to strengthen our core businesses for the long-term.”
With the Manros acquisition Wimm-Bill-Dann increases its market share in Siberia and the Far East to 22% (according to AC Nielsen data, 2005), thus, re-enforcing the company’s leadership in the region. Omsk Region is one of the richest territories of West Siberia in terms of raw milk, it produces around one third of all the milk produced in West Siberia.
For Wimm-Bill-Dann Manros will become the seventh dairy plant, located in the promising regions of Siberia and the Far East, which today constitute 9% of the company’s dairy sales.
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