Podravka signs deal to buy Fortenova food and drink assets

Podravaka had been appointed as “the preferred partner” for the transaction earlier this month. It had been required to pay a deposit of €15m for the takeover of Fortenova’s six agri-food subsidiaries.

The brands in the deal include fruit and vegetables processor Pik-Vinkovci and grains wholesaler Felix.

Podravka is also taking over Belje which produces wines, dairy products, cured meats and tomatoes under its namesake brand for the domestic and global markets.

Another food and beverage group included in the deal is Vupik, which works in cattle and pig farming and cereals and vegetable growing. It also produces a range of Grasevina and Frankovka wines under the labels Goldschmidt and Golubica.

Podravka said it expects the transaction to solidify the group’s “position as one of the most significant and largest domestic companies, with the majority of its revenue generated from international markets”.

Following the acquisition, these companies will sit in a third category within Podravka called Podravka Agri, accompanying its Food and Pharmaceuticals businesses.

Podravka is funding the purchase through commercial bank loans. The European Bank for Reconstruction and Development (EBRD) has been named as one of the partners financing the deal.

The EBRD will own a minority stake in Podravka Agri unit, while Podravka will own more than 80% of the shares.

Just Food