In January, sources familiar with the deal said Coca-Cola was considering buying a controlling stake in Nidan from private equity group Lion Capital.
Coca-Cola is vying with PepsiCo to expand in a market that Euromonitor International estimates was worth $3.2 billion last year.
If successful, the deal would push Coca-Cola to no 1 in the Russian juice market, leapfrogging PepsiCo, which currently has a 30% market share through its Lebedyansky juice maker. According to Euromonitor. Coca-Cola Hellenic has a 20.5% market share, while Nidan has 14.%
Moscow based Nidan, the maker of Moya Semya and Ya juices, may be valued at between $560 million and $620 million, based on estimated 2009 sales of $280 million and earnings before interest, depreciation and amortization of $60 million, said Tatyana Bobrovskaya, an analyst at BCS Financial Group.
Nidan’s revenue fell 7% to 8.02 billion rubles ($274 million) in 2008, according to an annual report posted on the company’s web site. Net income totalled 116.2 million rubles.
Coca-Cola already has a significant stake in the Russian juice market through Multon, which has a nearly 22% market share, according to research group Business Analitika.
Source: Moscow Times, Reuters, Bloomberg
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