Mezz fund “Volga River Growth” provided finances for regional food retailer “Rosinka”

Mezzanine fund “Volga River Growth” provided USD 30million to Lipetsk-based food retail chain “Rosinka” to acquire 100% shares of Orel-based chain “Sberegaika” 

The new combined company will manage 123 shops in Lipetsk, Voronezh, Orel, Kursk and Tambov regions. The two retailers have a lot in common: both had similar type “corner shops” and supermarkets. It is expected that yearly turnover of the united company will exceed RUB 5 billion this year (about USD 160 million).

The acquisition will double Rosinka’s sales and will give it access to two new regions. Shareholders hope that there are economies of scale due to more efficient use of warehouses, stock management and logistics, as well as general management of procurement and sales.

Managing partner of “New Russia Growth”, exclusive investment consultant to the Fund, Oleg Mashtalyar: “Professional management team, interesting industry and fast-growing business of the company were the main reasons for the investment decision. One of the fund’s main targets is to finance such industry consolidation deals”.