Velcom Group will invest in Valio business development

Velcom, a large MEAT producer that bought the Russian assets of the Finnish concern Valio, intends to systematically develop meat and dairy production, including through investments. it is reported by RIA Novosti with reference to the press service of the company. At the same time, entering a new segment does not mean a reduction in the output of meat products, she emphasizes.

According to news agencies, in the past few years, Velcom planned to diversify its business in the food market and considered various options, including the purchase of existing players. “It was fundamentally important for us that the acquired asset was distinguished by the high quality of its products and business efficiency,” the press service of the Interfax company quotes. “The acquisition of the Russian division of the Finnish concern Valio was the best solution to this problem.”  

The fact that Valio Group completed negotiations on the sale of the Russian division to the Velcom group of companies was written at the end of April. As part of the deal, the buyer acquires the rights to the Viola brand and a plant for the production of processed and semi-hard cheeses in the city of Ershovo, Moscow Region. According to the requirements of the agreement, the amount of the transaction is not disclosed. However, Velcom specifies that over the course of 30 years of its history, the company has been developing at its own expense. “And in this case, no credit resources were attracted to carry out the transaction,” the RIA Novosti press service quotes.  

The company intends to keep products under the Viola brand on the Russian market and allows the expansion of the product line. In addition, Velcom has the right to produce and sell products under Valio brands that are not included in the deal during a transitional period that may last until the end of the year.

The Valio concern has been working in RUSSIA for more than a hundred years, but in early March, against the backdrop of a military special operation in Ukraine, it said that it considered it impossible to continue this activity. RAS revenue of Valio LLC in 2021 increased by 8.8% to RUB 8.1 billion, net profit — by 29.3% to RUB 320.5 million.