Paulig completes sale of Russian business
MOSCOW. May 5 (Interfax) - Finland's Paulig, which specializes in the production of coffee, has sold its business in Russia.
The buyer of the shares in Paulig Rus LLC was private investor Vikas Soi. Paulig's Russian business, including a coffee roasting plant in Tver and 200 employees, will transfer to the new owner. The Paulig brands and recipes are not included in the sale. The value of the transaction is not disclosed, the company said in a statement.
The Paulig brand will be phased out in Russia during the next months. Green coffee supplies from Paulig to the new owner will continue for a transition period of maximum three months.
According to the SPARK-Interfax system, Paulig Rus LLC was renamed to Milfoods LLC, with the relevant change, as well as information about the change in ownership, registered on May 4.
Vikas Soy is an Indian citizen. According to RBC, he has been living in Russia for more than 30 years. Previously, he worked at the distributor Megapolis owned by Igor Kesaev and Sergey Katsiev, and then became managing director at coffee producer Milagro Beverage Company.
Paulig is a family-owned company that produces beverages and food products. Paulig has been roasting coffee since 1904. Its portfolio includes the Paulig, Santa Maria, Risenta, Poco Loco and Liven brands. Revenues in 2021 amounted to 966 million euros.
The company said that its Russian business accounted for less than 5% of last year's revenue and that leaving Russia will not have a significant impact on the rest of its business.
Due to the Russian operation in Ukraine and the changing geopolitical situation, "we concluded that continuing business in Russia was no longer responsible nor viable and initiated a withdrawal process. Considering our employees, customers and local legislation, the sale of the business was the best solution for the exit", Paulig CEO Rolf Ladau was quoted as saying in the statement.
Paulig announced its intention to leave the Russian market in early March.