SanCor Capital is born from the hand of three local businessmen / Argentina News

With an initial capital of US$60 million, it is the company continuing the business of the traditional Argentine dairy cooperative

Hand in hand with three important businessmen, it has just been created San Cor Capital, which will be the continuation of the activities of the traditional Argentine dairy that will have an initial capital of US$60 million to be able to restructure operations, add new management and become a public limited company.

The project is led by Marcelo Figueiras, owner of Richmond Laboratories; Joseph Urtubey, largest shareholder of Celulosa Argentina, and Gonzalo Scaglione, controller of the newspaper La Capital de Rosario.

The three came together to rescue from the crisis the largest dairy cooperative in Argentina, whose shareholders approved during an extraordinary meeting the creation of a trust that will give rise to the creation of SanCor Capital, an initiative that aims to establish a fund from the which to expand the production and turnover of the cooperative.

The chosen format will allow coexistence between the trust and the cooperative, but most of the important assets that the dairy company still has will be managed separately by the business group until, in the medium term, the entire company passes at the hands of the same administration.

Although none of the three businessmen are linked to the dairy industry, they admitted their willingness to invest in the company with the financial backing of Banco Nación and the support of the union that brings together workers in this industry.

The meeting took place in the town of Sunchales, Santa Fe, and was attended by delegates from the producers and members of the SanCor Board of Directors, who agreed to promote the new SanCor Capital, since it involves the entry of fresh foreign currency to support the production of a company that is considered a fundamental pillar of the agri-food industry. The trust agreement links the cooperative with the investment group and also creates a new Board of Directors made up of representatives of both parties, including a director appointed by the Association of Workers of the Dairy Industry of the Argentine Republic (ATILRA).

The initiative also had the support of the national government to revive a company that owns brands that, in some cases, accompanied the personal development of thousands of Argentines., such as SanCor Bebe, or milk, yogurt and butter that were also part of daily consumption but were distributed among foreign groups that took advantage of the scrapping of the cooperative.

More than eight months ago, the entrepreneurs had begun to outline a strategy to collaborate in the daily administration and in the search for fresh funds that would allow SanCor to once again become a commercially sustainable and financially sustainable dairy company.

The group also promised not to produce unfair dismissals among the approximately 1,450 workers of the cooperative, while SanCor will transfer to the trust assets necessary to meet the industrial and commercial objectives of the project to enhance the value of the company, such as facilities that are at the service of the elaboration of all the products that the company has the current or future possibility of producing and marketing.

national bourgeoisie

The initiative was taken by Urtubey, who then convinced Figueiras and Scaglione to join the proposal, who were joined by Leandro Salvatierra’s law firm.

The four are part of what Urtubey calls a “national bourgeoisie” interested in contributing ideas so as not to let iconic companies such as SanCor die, with strong weight in one of the most productive regions of the country such as the one made up of Santa Fe and Córdoba.

The talks gave rise to the possibility of offering a consistent rescue plan that, in a first stage, can obtain fresh funds that allow maintaining the necessary working capital to give continuity to SanCor’s production.

They managed to convince officials from the national government and from Santa Fe of their plan, in addition to the members of the cooperative and the union, in this case all united by the fear of suspecting that SanCor was headed for its irremediable disappearance.

The financing scheme they put together is simple: create a trust that is nourished by contributions from investors interested in reviving a dairy that has a fundamental specific weight in the provincial production chain, to which they will add state financing mechanisms to prop it up.

“We managed to convince all the actors involved about the need to recompose an icon company for Argentine dairy production and with strong roots among consumers,” said José Urtubey, in dialogue with iProfesional.

He also explained that the trust will be backed by a series of assets that will form the patrimony of that legal entity, which in turn will be managed by an independent board of directors of the cooperative that will be appointed by the business group in order to facilitate the development of the activity. industrial and commercial of SanCor.

“The idea is to generate a sustainable corporate business that yields the necessary benefits to attend to the labor obligations of the personnel that continue to report directly to SanCor and the obligations that allow the continuity of the cooperative’s business within the new conformation of the business together with to the trust,” he clarified.

Marcelo Figueiras wants to help rescue a national icon like SanCor, which is part of the history of the national dairy industry

It would not be unthinkable to consider that based on the know-how of Richmond Laboratories, the dairy would once again produce fortified milk for newborns and other pharma-related products.

In fact, the traditional SanCor Bebe passed through various hands until it was controlled by another competitor laboratory in Richmond, Roemmers, which completed the purchase of the brand from Reckitt Benckiser Group plc and SanCor itself. In fact, he kept 100% of the shares of Mead Johnson Nutrition Argentina for US$30 million to also add Sancor Bebe Premium and the licenses of the Enfa Bebe, Nutramigen and Enfamil brands in Argentina, Bolivia, Paraguay and Uruguay.