Romanian investors purchase insolvent turkey meat producer for €20m
The transaction was recently finalised by Romania’s CITR Group, a specialist in reorganisation, restructuring and investment processes, which acted as Galli Gallo’s judicial administrator. The Bucharest-based company was responsible for implementing a reorganisation plan for the turkey meat producer. The country’s state-run CEC Bank acted as main creditor for the transaction.
Reorganisation plan implemented
"CEC Bank defines itself as an active supporter of Romanian projects that, by their nature, contribute to economic development [and] to creating and maintaining jobs. Peneş is a strong brand in which we believe and which will continue to exist, owing to an effective plan to reorganise Galli Gallo,” said Radu Graţian Gheţea, president of CEC Bank, as quoted in a statement by CITR Group.
Galli Gallo filed for bankruptcy with two other companies that were part of the group, Avicola Codlea & Partners SRL and Broilerom SRL, in September 2013.
Based in Brașov, in the country’s central region, Galli Gallo said it operated a modern turkey slaughterhouse with a capacity of some 48,000 tonnes (t) per year, and covering an area of around 6,000sq m. The facility was launched in August 2010, and its construction was part of Galli Gallo’s €22m investment programme, which also allowed the Romanian company to develop turkey farms, distribution capacities and logistics facilities, according to data released by the turkey meat producer.
The company’s farms are located in Codlea and Sighișoara, also in the country’s central region, and handle about 1.2m head per year, as indicated by data from Galli Gallo. In addition to the meat acquired from the firm’s own farms, Galli Gallo has partnerships with other farms in Brașov county. This allows it to produce an additional 4,000t of turkey meat per year.
The turkey meat producer also operates a fleet of 25 commercial vehicles.
The latest move comes amid an increase in the country’s meat consumption. The positive trend has been bolstered by the government’s decision from 2015 to cut the value-added tax (VAT) on meat from 24% to 9%, as indicated by Romanian meat industry players.
Pork remains the most popular type of meat in the Romanian market, with an average consumption of some 29kg per year, followed by poultry meat at around 20.1kg per year, according to the state-run National Institute of Statistics (INSSE).
