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20th September, 2018

Richter’s Romanian subsidiary reauthorised to operate

Romanian authorities have granted a new operating licence to Pharmafarm, Richter’s local wholesaler subsidiary.

The authorities earlier this year revoked Pharmafarm’s business license for a breach of good distribution practice.

The revocation of the license meant a monthly loss of €20 million in revenues.

Richter said most of its warehousing facilities have already reobtained their licences.

Pharmafarm, which Richter acquired in 2007, has six regional warehouses and employs more than 500.

The company has a 6% share of the wholesale market. (hvg.hu; napi.hu; portfolio.hu; profitline.hu)
20th September, 2018

Mergers and acquisitions rising

The value of Hungarian mergers and acquisitions (M&A) rose 136% year-on-year to $2.3 billion in the first six months, data compiled by consultancy EY shows.

The number of transactions reached 66. M&A activity was highest in the real estate sector, with 17 deals disclosed.

Most M&A transactions involved two Hungarian companies, but the biggest deals were made between Hungarians and foreigners.

British companies made five purchases, German and French ones three each, and Austrian and Swiss firms two apiece.

The biggest deal of the first six months was the acquisition of Partner in Pet Food by private equity fund Cinven in April for $607 million, followed by the sale of TriGranit to investment firm Revitas in June for $348 million and LogMeIn for $342 million. Industry insiders estimate the acquisition of cybersecurity firm BalaBit by software maker One Identity at over $100 million. (napi.hu; portfolio.hu; profitline.hu; ado.hu)
20th September, 2018

MAM-Hungaria announces expansion

Austria’s MAM-Hungaria opened a 2,000m2 production hall and a 1,400m2 warehouse from a Ft 2.5 billion investment in Vaskeresztes, Vas county, it was announced yesterday.

MAM-Hungaria is the country’s only baby product manufacturer.

The company began operations in 1991 with a staff of eight people, which has grown to above 500 over the years.

By doubling the size of production facilities, the company will be able to increase annual production of baby bottles and soothers from 80-90 million to 110-120 million.

MAM-Hungaria reported an after-tax profit of €2.3 million on €42 million in revenue last year. (vaol.hu)
20th September, 2018

Mineral water maker to double capacity

Mineral water and soft drinks company Szentkiralyi-Kekkuti on Wednesday inaugurated a Ft 2.2 billion plant and bottling line at its base in Szentkiraly.

The new production line has capacity to fill 32,000 bottles per hour, twice the present limit, said chairman Levente Balogh.

The Hungarian businessman, the founder of Szentkiraly, teamed up with Italy’s Pasquale family in 2015, merging his Szentkiralyi business with their Hungarian bottler Kekkuti to form Szentkiralyi-Kekkuti, which is now the market leader in Hungary.

The investment will strengthen the company’s market position, Balogh added. Alessandro Pasquale said the Szentkiralyi brand is one of the strongest and best-liked brands within the group.

The company’s revenues rose from Ft 10 billion in 2016 to Ft 16 billion in 2017, while after-tax profit in the same period declined from Ft 1.5 billion to Ft 1.4 billion. (forbes.hu; napi.hu; hvg.hu)
20th September, 2018

Matrai Eromu shareholders approve investment strategy

Shareholders of Matrai Eromu, operator of Hungary’s second biggest power plant, approved a long-term strategy that includes investments in renewable energy and energy storage at an extraordinary general meeting on Wednesday.

Matrai Eromu, which is controlled by Opus Global, plans major investments in renewable energy, electricity network regulation and power storage to 2030.

The company also aims to ensure that its coal-, biomass- and gas-fuelled power businesses are profitable for the coming decade, as the era of coal comes to an end.

The company will enter a new era as the strategy fits the country’s national energy policy goals, said chairman Jozsef Valaska.

Among the investments Matrai Eromu plans are two solar parks with a combined capacity of 40MW. Construction of one of the parks began on Wednesday.

Shareholders decided to finance the projects with the proceeds from the sale of a 16MW solar park to state-owned MVM Hungarowind. The company is also planning to build a refuse-derived fuel block. The investments will not require a capital raise.

Matrai Eromu produces about 20% of the electricity generated in Hungary. (portfolio.hu; napi.hu; hvg.hu)

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