Warsaw (Puls Biznesu) – The German Lekkerland bought Milo, the Polish distributor of cigarettes and food, for EUR 45m. The Polish company will develop the food market.
Milo, which had PLN 2.7 billion (EUR 710.1m) of sales in 2005, has recently added to its offer – the distribution of cigarettes, food, including alcohol. Thanks to the new investor, the company will stronger focus on this market. Lekkerland bought 100 percent of this company from TWI and four Polish businessmen for EUR 45m.
“In Western Europe, there is stagnation in our business. That’s why we invest in Eastern Europe, where the market has still big growth potential”, Michael Gerlif, the member of the board of Lekkerland said.
Milo will change its name and logo into Lekkerland Polska. The company will develop convenience outlets allowing for quick, comfortable and easy shopping. In Europe, Lekkerland’s main clients are shops at gas stations, kiosks, groceries or fast food chains. Several dozen percent of Lekkerland’s sales are generated by food. As far as Milo is concerned, the number amounts to 10 percent only. That’s why the offer of the Polish company will be developed by new products like fresh and frozen food. According to Robert Zalewski, Milo CEO, the company wants to increase sales by 50 percent within four years.
(PLN 1 = EUR 0.263)