Alqueria II

completed

Productos Naturales de la Sabana S.A.   Alqueria (“Alqueria” or the “company”)  is the third-largest dairy company in Colombia with 4,100 workers.  Alqueria processes milk and its derivatives into a wide range of diversified dairy products, such as: UHT milk, whole milk, non-lactose, flavored and low-fat milks, added-value milks, powdered milk, and cream, as well as yogurt and whey.  Other products include natural orange juice, oat and almond beverages.  The company has 8 industrial plants strategically located in the regions of Cajica, Medellin, Santander, Santa Marta, Cesar, and Palmira.  Alqueria owns 21 collection centers strategically located around the milk production areas, sourcing ~ 845 thousand liters per day from a total national daily production of over 19 million liters. Approximately 65% of the milk sourced comes from the Sabana (Bogota) and coastal region of Colombia.  Alqueria subsidiaries include: (i) Comercializadora -  engages in the commercialization, storage, assembly, and distribution of the Group’s products; (ii) Envases Plasticos de la Sabana (EPLAS) - manufactures and distributes packaging materials for Alqueria and third party companies; (iii) Miraka farm -  dairy farm leasing operation located in Puerto Gaitan, Meta Region; (iv) Freskaleche (plants acquired in 2015) - processes and manufactures dairy products in the Santander region;  and (v) DASA (acquired in 2016) - engages in manufacturing and commercialization of yogurts, under both Alqueria and DANONE brands. All production plants utilize modern automated equipment. Alqueria is seeking financing of approximately US$ 69 million to repay financial debt and support its expansion program from 2017-2021. IFC would provide US$ 20 million in equity, Alqueria’s expansion  program expects to: (i) consolidate the identified synergies with Freskaleche in the Santander region in distribution, raw milk access, transport, administration and branding; (ii) reach a higher market penetration in the Atlantic and Pacific Coasts via increased commercial and marketing efforts; (iii) increase its share in the yogurt segment by the recent acquisition of DASA; (iv) develop new value added products, such as different kinds of yogurts, 100% fruit based juices, almond beverages, why products and others; and (v) ally with strategic third parties in the distribution of juices.