Euroventures Ukraine acquires a stake in a leading Ukrainian fast food chain

October 05, 2007

September, 2007. Euroventures Ukraine Fund II, managed by Euroventures Ukraine, and The Ukraine Opportunity Trust PLC. have completed an investment into Anthoreal Estates Limited (former Food Master), which operates a Ukrainian fast food chain.   

Euroventures Ukraine Fund II (EVU II) together with The Ukraine Opportunity Trust PLC. (UKRO) invested US$ 5.0 million to finance Food Master's expansion. A 25.86% stake was acquired by EVU II for US$ 3.1 million and 16.31% - by UKRO for US$ 1.9 million. The Founders of the new company, Anthoreal Estates Limited, are two foreign companies.

Food Master is a fast growing Ukrainian fast food chain. The company was founded in 2001 and in 2003 it opened the first 4 fast food outlets under the brand ‘Smachna Kartoplya' (Tasty Potato). During 2005-2006 the Company introduced 3 new formats: "Coffee Time",  "Planeta Piva" (the Planet of Beer) and "Drova". As of today, the Company operates 55 outlets and 30 are in progress. In 2006, the Company acquired MakSmak and has now started to re-brand the existing outlets into a new format of on-the-spot prepared pizzas under the brand name "Papa John" for further development. Regional expansion as well as the development of new brands is on the agenda.

Commenting on Fund's goal and its role in Company's future development, Senior Investment Manager of Euroventures Ukraine, Mr. Vadym Gruzyn said, "We invest behind strong, talented and motivated management teams and assist them in positioning their companies for significant growth and profitability. Euroventures Ukraine Team can provide assistance in areas such as strategic planning, acquisitions, future financing, corporate governance and recruitment of senior managers. Usually, we do not seek operating control over the company in which we invest. Depending on the circumstances, if the Company grows extensively, the Fund may extend financing by itself or in syndication with other investors".

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