Bulgarian Dairy Fama Receives Substantial EBRD Loan

The EBRD has announced plans to provide a substantial financing package to one of Bulgaria’s top dairy producers. Fama, the third largest supplier of milk products in Bulgaria, will use the €5.5 million mezzanine loan to increase its market share through the construction of three new facilities in its strongest markets and the development of more long-life products.

Some of the funds, which will be combined with a €2.5 million private equity investment from GED Eastern Fund II, will allow Fama to restructure its short and medium term debt.

FAMA (www.fama.bg)
Fama is the third largest dairy producer in Bulgaria, boasting nearly a 12% market share of an industry that is still very much fractured in the Balkans.

The company’s three largest market regions are Varna, Sofia, and Plovdiv, where it distributes both products carrying the Fama name and international brands under license.

The company plans to build a new distribution network in the three regions to increase market share and brand presence.

In 2006, FAMA acquired the local manufacturer Serdika.

Fama has been part of the portfolio of Spanish private equity investor GED since the middle of 2007.

GED (www.gedprivateequity.com)
Established in 1996, GED leads the independent mid-market private equity market. The firm manages EUR 350 million in four different private equity funds. The company specializes in small-buyouts of businesses and real estate that offer growth as well as management opportunities. With 30 investment professionals divided into two organizations, GED Private Equity and GED Private Equity Real Estate, the company has offices in Spain, Portugal, Bulgaria and Romania.