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Strategic Partnership between SMERemediumCap and Inspiring Earth
Posted: July 18, 2024
Through the establishment of a joint company, which will acquire majority equity stakes in Latzimas S.A., Oils of Sitia – LASITIA S.A. and Olympian Green International S.A., a new strong olive oil group is being formed.
The combination of the companies is expected to generate meaningful synergies, both in terms of cost optimisation and the implementation of a flexible commercial strategy across a broad product portfolio.
The new group benefits from long-term agreements that secure access to some of the highest-quality and most important olive oil productions in Crete (Rethymno, Sitia) and the Peloponnese.
Η επενδυτική φιλοσοφία του SMERemediumCap II
The primary objective of the new group is the expansion of its branded products in the Greek and European markets, alongside further growth in North America (United States, Canada), South America (Brazil), Asia (Japan) and Oceania, which represent the world’s largest olive oil import markets.
The total investment amounts to €10 million. The strength of the new capital, together with additional bank financing, will support a growth-oriented commercial strategy aimed at achieving the Group’s strategic objectives. These objectives focus on geographic expansion, the development of complementary products, and vertical integration through partnerships and investments in targeted markets and companies, with the goal of increasing turnover and profitability.
Mr Nikolaos Karamouzis, Chairman of SMERemediumCap, stated:
“We are particularly pleased and optimistic about our entry into a sector in which our country has a long-standing and significant global presence, as well as about our efforts to support the financial restructuring of companies with strong growth potential, generating benefits for local economies, employees and the country as a whole. Greek olive oil has substantial growth potential and requires larger, stronger and more outward-looking businesses. I would also like to thank the banks and servicers involved for their cooperation and for accepting our proposals regarding financing and the reduction of the company’s overall liabilities.”
Mr Konstantinos Antonopoulos, Chairman and CEO of Inspiring Earth, stated:
“With our decade-long experience in the olive oil sector, we recognise that at a time of disruptions in global production, this partnership represents the right step towards the creation of a new group with a leading role, capable of responding to the major challenges and opportunities of the international market. In this effort, the management teams of the companies will play a critical role, particularly that of Latzimas S.A., the largest company of the new group, where the Kotzabasakis brothers have delivered outstanding work.”
Companies of the New Group
Latzimas S.A. is one of the most prominent Greek companies in the sector, with a strong presence in both the Greek and European markets. Headquartered in Rethymno, the company operates a fully integrated production infrastructure and has access to privately owned olive groves, a factor that significantly enhances the competitiveness of its products.
Oils of Sitia – LASITIA S.A. was established four years ago and is engaged in the bottling and marketing of the internationally recognised and highly sought-after PDO Sitia olive oil, sourced from local agricultural cooperatives. The company operates bottling facilities with a capacity of 90 tonnes per day.
Olympian Green International S.A. bottles premium extra virgin olive oil from Western Peloponnese, with a particular focus on PGI Olympia olive oil. The company ranks among the top five Greek brands in terms of awards and distinctions, having received more than 60 international awards.
Financial Support and Management
As the majority shareholder of the joint company, SMERemediumCap will contribute to the financial restructuring of the Group’s companies and ensure access to new financing instruments and debt capital.
The management of the new group will be undertaken by the executive team of Inspiring Earth, with Konstantinos Antonopoulos serving as Chief Executive Officer. The team brings long-standing experience in the branded extra virgin olive oil market.
The continued involvement of founding executives from Latzimas S.A. and executives of EAS Sitia within the new structure is also of particular importance for the Group’s presence and strong role in the local communities where the companies operate, as a core objective of the Group is to support and strengthen local producers.