Paulig Group, which had previously decided to leave the Russian market, transferred its local asset. The new owner of the legal entity, who owns the Russian Paulig factory for frying coffee, was the top manager of the Milagro competitor company
Paulig Coffee Manufacturer sold his business in Russia
Paulig Group, which had previously decided to leave the Russian market, transferred its local asset. The new owner of the legal entity, who owns the Russian Paulig factory for frying coffee, was the top manager of the Milagro competitor company
The Finnish company for the production and frying of Paulig Group coffee completed the transfer of its Russian business. On Wednesday, May 4, the founder was replaced by the local Paulig legal entity – 100% Paulig Rus was received by an India citizen Vikas Soi, it follows the Unified State Register of Legal Entities. Paulig also announced the completion of the transaction for the sale of Russian assets on his own website.
The Russian company, specializing in wholesale coffee, tea, cocoa and spices, also changed its name to Milfuds LLC. The new owner received a coffee frying plant in Tver, but the brands and recipes of Paulig are not included in the deal. In the coming months, the Paulig brand will be withdrawn from the Russian market, the company said, however, for the transition period, which will be no more than three months, the Finnish manufacturer will continue the supply of green coffee to the new asset owner. The transaction value is not disclosed.
In 2009, Paulig estimated his investments in the production complex in the Borovlevo Industrial Park at € 20 million.
Prior to the start of a special operation in Ukraine, the Paulig business in Russia could cost, according to the general director of Infoline Analytics, Mikhail Burmistrov, 1.2-1.5 billion rubles, but taking into account the discount due to the company's departure from the Russian market, now the volume Transactions are unlikely to exceed 200-300 million rubles. “Moreover, most likely, the transaction included the conditions for deferred payment,” the expert suggests.
In early March, Paulig said she was leaving the Russian market in connection with the situation in Ukraine and changes in the geopolitical situation. “Given the local legislation, the sale of business was the best solution for the exit,” Rolf Ladau, CEO of the company, commented earlier.
Than Paulig is known
Paulig in 1876 was founded by German Gustav Paulig, who moved to Finland from Germany. His company was originally engaged in importing and selling colonial goods in the underlying shop: salt, coffee, spices, flour, port, cognac. In 1904, the company moved from wholesale trade to products and opened a coffee frying plant to Helsinki. Today the company is operating in the countries of Northern Europe, the Baltic, the UK and Russia.
Paulig began work in the Russian market in 1992. In 2011, she built a caffeam factory in the Tver region, which produced about 7 million kg of products per year and worked 200 employees, the manufacturer said.
In 2021, the revenue of the Paulig Group amounted to € 966 million.In its reporting, the company indicated that Russia accounted for about 5% of the company's revenue last year. The manufacturer noted that the deal to sell the Russian plant will not have a significant impact on Paulig's prospects for its other businesses.
Vikas Soi, an Indian citizen, has been living in Russia for over 30 years. A graduate of the Moscow State University of Fine Chemical Technologies named after M. V. Lomonosov, he built a career for 16 years in the Megapolis distributor company of Igor Kesaev and Sergey Katsiev, where he was responsible for the Grocery direction, follows from Soya's profile in the professional social network LinkedIn. Since the beginning of 2016, the top manager has become the managing director of the coffee manufacturer Milagro Beverage Company (brands Milagro, D'Arte, Belagio).