KYIV – Horizon Capital, a leading regional private equity fund manager, announced today that it has made an investment in Vitmark-Ukraine, one of Ukraine’s leading juice companies whose brands include well-known Jaffa and Nash Sik. The capital comes from its $390 million Emerging Europe Growth Fund II (EEGF II). The terms of the transaction have not been disclosed.
Vitmark – Ukraine is the #2 player on the non-alcoholic beverages market in Ukraine, with market share 27.5%. It currently operates two production sites in the Odessa region, processing plant in Rakhny and a nation wide distribution network with 12 regional sales offices. Jaffa and Nash Sik brands cover both premium and middle market segments, enabling the Company to reach a broad segment of the population and significantly increase its market share since 2008.
In the recent past, the non-alcoholic beverages market has grown on the back of strong macroeconomic fundamentals. In the short term, the return to GDP and disposable income growth in the region is expected to trigger a recovery of the market.
While in the longer term, growth in consumption is likely to result from increasing focus and trends toward healthier living, not unlike in more developed markets. With an impressive mix of brands and products in place, Vitmark-Ukraine is favorably positioned to benefit from these market trends.
Natalie Jaresko, Co-Managing Partner of Horizon Capital, commented: “We are pleased to announce the investment into this dynamic company. With its excellent track record in new product development and nationwide presence, the Company is uniquely positioned to build on its brand strength and capture a significant part of the as-yet underpenetrated market in the region. This marks our fifth acquisition this year, and we continue to believe in strong regional fundamentals.”
Vitali Vinitski, Chairman of the Board of Vitmark Ukraine, said: “This transaction provides new possibilities for further and faster development of the company, both in strengthening positions of company’s brands in the core market and business expansion to new market segments with increased
investments in innovations.”
HORIZON CAPITAL (www.horizoncapital.com.ua) is a private equity fund manager that originates and manages investments in mid-cap companies with outstanding growth and profit potential in Ukraine, Belarus and the region. Currently, Horizon Capital manages three funds, Emerging Europe Growth Fund II (EEGF II), Emerging Europe Growth Fund (EEGF) and Western NIS Enterprise Fund (WNISEF), with over $600 million under management.
VITMARK – UKRAINE (www.vitmark.com) is one of the leading Ukrainian producers of juice, nectars, juicy drinks, baby food and concentrates (brands Jaffa, Our Juice Odessa Baby Food Cannery, Sokovita, Chudo-Chado, Aquarte). Vitmark was founded in 1994, and now owns over 27.5% of Ukrainian JNSD category, also having a leading share of 20% in baby food juices and purees segment. Company’s turnover in 2009 was 840 million UAH.
NOTE: Horizon Capital is a member of the U.S.-Ukraine Business Council (USUBC), Wash, D.C., www.usubc.org.