As we like to mention again and again, if brands are not for value, they are for nothing. This is to say that branding is a management approach to solve business problems and to deliver dollar and cents value for the brand’s shareholders.
Domo
July, 2007
The shareholders of the retail chain Domo sold 75% of the shares to the British investment fund Equest Investment Balkans Limited for EUR 75 million, in the biggest transaction recorded to date on the Romanian retail market. After the major rebranding process led by Brandient in 2005 (see case study), Domo has consolidated its position as the most profitable company on the electronic & white goods retail market. Through the acquisition of Domo and its integration with previously-owned companies, Equest has created one the largest retail groups in the South-Eastern Europe, specialized in household appliances, electronics and IT&C.
Albalact
April, 2007
The value of the Albalact business (see case study)—market capitalization—has exceeded EUR 100 million. Two years ago, the stock value of the company was only EUR 9.9 million. In the meantime, the company launched the legendary brands Fulga (see case study) and Zuzu (see case study), developed by Brandient, who also refreshed the identity of de Albalact brand and redesigned the corporate identity of Albalact. Fulga and Zuzu enjoyed an instant success and shortly became emblematic brands for the category, propelling Albalact in the top 5 dairy producers in Romania. From the Fulga launch and until the end of 2007, the turnover of Albalact has risen four times, to EUR 42 million.
Update August, 2008. Despite the turbulences on the Bucharest Stock Exchange, the market capitalization of Albalact remains at over EUR 60 million, a remarkable value increase since 2005. According to market analysis by MEMRB, Zuzu is the leader on the fresh pasteurized milk segment and Fulga is the second runner up on the UHT milk segment.
Domenia & Estima
May 2006
Domenia Credit (see case study) & Estima Finance contributed to the approx EUR 100 mil deal negociated by their shareholder RAEF (Romanian American Enterprise Fund) which sold the controlling stakes in 3 of its financing institutions. GE Capital, part of General Electric out-bid HSBC, Societe Generale and AIG, and bought the two brands created by Brandient in its quest to becoming a major player in the SCE European Region.
Flanco
January, 2006
Flanco (see case study ) shareholders confirmed selling the brand to Flamingo International, the leading Romanian IT&C retailer with a growing presence in the SE European region, for about EUR 38 mil (cash and paper deal). Flanco undertook a rebranding with Brandient in 2003 and it was the first leading retailer to engage in such a process.
Astral
July, 2005
Astral (see case study) delivered huge shareholder value, being acquired by UPC (European arm of Liberty Global, the third global cable player) for about USD 420 mil. This is the highest amount paid so far in Romania for a company built from scratch by local entrepreneurs. The brand revitalised by Brandient was pivotal in the transition from a small cable player to a national leader in integrated telecommunications.
Credisson
May, 2005
Credisson (see case study) proved to be one of the fastest value creation businesses in Romania, being acquired by Cetelem BNP/Paribas, the European leader in consumer credit, for about EUR 40 mil, after only two years in business. The brand created by Brandient played definitely a role in the rapid escalating of the business.
