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EBRD finances a Bulgarian personal care products company
A US$ 10 million (ECU 8 million) long-term secured loan from the European Bank for Reconstruction and Development (EBRD) is being extended to Astera A.D., a leading Bulgarian personal care products company, which recently acquired 67 per cent of Aroma A.D. in a privatisation transaction. Aroma is a leading Bulgarian producer of cosmetics and personal hygiene products. The proceeds of the loan will support the privatisation and modernisation of Aroma.
Tim O'Neill, the EBRD's Resident Representative in Bulgaria, commented: "This is the EBRD's first private sector industrial transaction with a 100 per cent Bulgarian company. Astera has been instrumental in revitalising a traditional Bulgarian market and this loan will allow it to continue to grow by facilitating the acquisition of Aroma. This is a prime example of EBRD commitment to private sector development in Bulgaria despite an uncertain economic environment."
Since its establishment in December 1991, Astera has specialised in the wholesale distribution of health and beauty products. It is now the leading Bulgarian trading company in the sector, targeting the premium end of the market with attractively packaged products at affordable prices. The acquisition of Aroma and the modernisation and expansion of the facilities will allow Astera to remain competitive. A rapid increase in demand for its products led to the decision to invest in its own production facilities through the acquisition of one of its state-owned suppliers.
As before, Astera will continue to focus its activities on the sale of toothpaste along with shampoos, creams and deodorants to all its major markets. Of these, Russia is traditionally the largest, followed by Bulgaria, Ukraine and Belarus.
The acquisition of Aroma will diversify Astera's products, enlarge the market for its products and strengthen its distribution network in Bulgaria, enabling it to achieve its strategic objective of becoming one of the country's major producers and distributors of personal care products.
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