AQUILA signs a preliminary transaction agreement for the acquisition of Parmafood

AQUILA (symbol AQ), the market leader in the field of integrated distribution and logistics services for consumer goods in Romania and the Republic of Moldova, announces the signing of a preliminary transaction agreement to acquire 100% of the shares of Parmafood Trading SRL and Parmafood Group Distribution SRL, companies placed among the leading distributors of fast-moving consumer goods. The transaction will take place subject to obtaining the necessary approvals from the Competition Council, the Commission for the Examination of Foreign Direct Investments, and after the prior approval of the main terms and conditions by AQUILA’s Extraordinary General Shareholders Meeting.

Cătălin Vasile, CEO AQUILA:

"According to the business development strategy announced with the listing on the Bucharest Stock Exchange, we continue the acquisitions of companies and maintain a broader approach from the market perspective and profitability of the target company. Also, the acquisition will allow us to expand and strengthen our presence in all distribution channels with products complementary to our activity and represents another step in consolidating the business. The completion of the acquisition of Parmafood companies will allow the expansion of AQUILA's portfolio with new international and local partners, continuing to offer our consumers diversified and high-quality products. We are dedicated to sustainable growth and strengthening our position in the distribution market, contributing to the solid foundation of the business, in line with the mission to have an AQUILA distributed product in every home."

The total agreed price for the acquisition of both companies will be a maximum of EUR 16.5 million, from which debts will be deducted, based on a price mechanism established by the parties, and will be paid from own sources.

The agreed payment method consists of paying 80% of the total amount upon closing the transaction and 10% after 1 year, respectively 2 years from the closing of the transaction.

Eugen Savu, majority shareholder and General Manager, Parmafood:

"It is an important decision regarding the future of our company and comes as a confirmation of the maturity of our business model. We decided to offer continuity to the distribution business by associating with a larger player who shares our vision and values and who will create opportunities for growth and development for both our business partners and our employees."

Parmafood companies have a combined history of 3 decades and hold a portfolio of over 100 brands with national and international recognition. Parmafood Trading SRL and Parmafood Group Distribution SRL recorded a combined turnover of RON 245.53 million in 2022 and a combined net profit of RON 15.67 million. The acquired companies carry out distribution activities in HoReCa, Modern Retail, and Traditional Retail channels and operate logistic warehouses with integrated stock management systems.

About AQUILA

AQUILA operates in Romania and the Republic of Moldova, with an integrated business model, with activity in the following business segments: distribution, logistics, and transport. AQUILA sells consumer goods in over 72,000 points of sale across all FMCG retail channels, covering over 90% of the market. The integrated product portfolio totals over 10,000 products, with own brands as Gradena: frozen vegetables and fruits; LaMasa: semi cooked frozen meats; Yachtis: frozen fish and seafood products; and also well-known brands from different categories such as: personal care products - Rexona, Dove; sweets - Kinder, Raffaello, Snickers or Mars; coffee – Lavazza; cleaning products - Dero, Cif or Coccolino; pet food – Whiskas, Pedigree; hygiene products – Kleenex, Kotex, Zewa, Tena, Libresse; baby diapers – Huggies; frozen vegetables and canned food – Bonduelle; vegetable sour cream and vegetable whipped cream – Gran Cucina and Hulala; fish and fish products – Frosta.

The company was founded in 1994 by the entrepreneurs Alin Adrian Dociu and Constantin Cătălin Vasile. Since November 2021 is listed on the Bucharest Stock Exchange (BVB), following an initial public offering worth 367 million lei, the largest initial public offering carried out by an entrepreneurial company on the local capital market. The company's shares (symbol AQ) are included in the Bucharest Stock Exchange reference index– BET and in the Global Micro Cap index of FTSE Russell. Starting from September 1, 2023, the company's shares are also included in the MSCI Frontier IMI and MSCI Romania IMI indices.

The company obtained the maximum score, 10, in the VEKTOR evaluation carried out by the Romanian Investor Relations Association - ARIR, based on 12 criteria regarding corporate governance and communication with investors.

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Press contact: Daniela Maior (Șerban), all@vertikgroup.eu, +40 742 242 662