As part of its strategy for regional expansion in Russia, Wimm-Bill-Dann Foods has purchased Roska St. Petersburg Dairy Company for about €12 million. The company plans to increase output and modernise existing facilities.
In a press release the Moscow food company said the purchase boosts the number of enterprises it holds to 19.
According to Wimm-Bill-Dann, the Roska dairy has a milk processing capacity of 500 tons a day, though it currently produces only about 40 tons and employs about 350 people.
The company plans to triple the factory's output by upgrading the existing facility and installing new equipment.
Earlier this month Wimm-Bill-Dann said it would purchase a dairy in the St. Petersburg region and put the cost of building a dairy with a daily capacity of 500 metric tons of products at around $40 million (€41m) to $50 million.
The company has already financed four acquisitions this year with the money it raised through an initial public offering of American Depositary Receipts in February, but said the "main task of the company in the future will be to modernise existing facilities."
Wimm-Bill-Dann Foods also said it already has a unit in St Petersburg, the Nevsky Dairy Trading House, and plans to further develop its presence in the regional market, both in terms of production and sales.