Dedeman To Acquire Letea Bacau Platform for EUR3.16M

Bacau-based Dedeman group will acquire the industrial platform of former paper mill Letea Bacau for EUR3.16 million and plans to develop a business hub on the site.

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Letea's creditors have accepted Dedeman's financial offer and the deal is close to completion.

Letea SA was once the largest paper mill in Eastern Europe. The sale of its assets, which include 342,449 square meters of land, buildings and special constructions, will be completed by direct negotiation with judicial liquidator Sierra Quadrant. The liquidator expects potential outbids by June 30.

“Our strategy was to turn Letea Bacau into a business hub and we hope the future owner follows this solution. It has production halls, utility spaces, lands and buildings positioned in an accessible industrial area of the city. The platform is connected to utilities and has access to a dedicated railway line. Bacau also has an international airport,” said Florin Dragomir, managing associate at sierra Quadrant.

Letea Bacau was one of Romania's strategic investments in the eastern region and once employed thousands of people. In the 1980s, the mill manufactured over 200 types of paper and cardboard as well as newsprint paper, covering the whole of domestic demand and exported products to the USA, Switzerland, the Netherlands, Middles East and Asian countries.

It was one of the oldest companies in Romania, founded in 1878. For a century, it was the country's biggest supplier of newsprint paper and stationary. It was privatized in 2003, ending up in possession of former Bacau mayor Dumitru Sechelariu. The paper mill went bankrupt in 2011.

After two and a half years of attempts to sell the mill as a whole, Sierra Quadrant decided to sell its assets, seeking an investor that would relaunch the industrial platform.

Dedeman is the largest entrepreneurial company in Romania, with a turnover of EUR1.4 billion in 2018.

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