March 22, 2016
DECA Investments AIFM, the exclusive investment manager of Diorama Investments Hellenic Growth Fund, announced the completion of the Fund’s second investment: the acquisition of a strategic equity position in Damavand S.A. in two phases for a consideration of up to EUR 7mn.
Damavand is a growing Greek company involved in the processing of agricultural products, mainly tomato and fruit. This is a sector in which Greece enjoys significant competitive advantage. Damavand is one of the largest companies in the sector with 2014 revenues of EUR 14mn, attractive profitability and increasing export orientation. The investment will enable Damavand to increase substantially its production, use its competitive advantage afforded by its geographic position, increase substantially its revenues and exports and enhance its competitive position internationally.
The investment in Damavand fits Diorama Fund’s strategy: making equity investments in growing, extrovert Greek companies. Diorama’s objective is to help the investee companies capitalize on their competitive advantages and become important players in the international arena. DECA has already completed a mapping of the Greek small and medium enterprise universe and is in advanced discussions regarding other possible investments.
Ms. Christina Karachaliou, Damavand’s Chief Executive Officer stated: “In the middle of a particularly difficult time for Greece Diorama believed in Damavand’s potential and our vision. Our primary goal is to strengthen Damavand’s position internationally. The high quality of our products, our technical know-how and Diorama’s support assure us that we will attain this goal. We will redouble our efforts to continue our growth following our mission: the satisfaction of our customers, our employees and our suppliers, the farmers, thus contributing to the growth of Greece’s economy.”
John Kalantzis, DECA Investments AIFM CIO stated: “Our decision to invest in Damavand, an export oriented company which has the potential to expand in new international markets, fits perfectly Diorama’s objective. We believe that our investment will help increase the tomato demand thus helping the farmers/suppliers, will generate new jobs and create significant economic value for Damavand’s shareholders. Damavand is a well-managed company which has the potential to become a significant player in the European tomato processing sector”.
The investment in Damavand is the second investment of Diorama Investments Hellenic Growth Fund. The investment fits in Diorama’s strategy, which is to provide capital to export-oriented Greek companies at a time of very limited liquidity. Last November Diorama announced its first investment in Atlas Tapes S.A., a growing Greek company involved in the production and trading of adhesive tapes and other packaging material.
Diorama Investments Hellenic Growth Fund is a growth fund established in Luxembourg in September 2014. Its goal is to make equity investments, usually through a capital increase, to Greek small and medium enterprises. The Fund’s investors are distinguished Greek businesspeople and institutional investors. The Fund’s investments are managed by DECA Investments AIFM, which is licensed by and reports to the Hellenic Capital Markets Commission.