Podravka signs deal to buy Fortenova food and drink assets
Croatian food business Podravka has struck a deal to buy a clutch of food and drink companies from the local agri-food business Fortenova Group. The total value of the transaction is €333m ($361m). The completion of the deal depends on receiving approval from the Croatian Competition Agency and other regional regulatory agencies, Podravka said in a statement.
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
Related news
The government guarantees that there will continue to be a flood of tourists in Croatia
Croatia remains an attractive destination for tourists, and the government…
Read more >Szallas.hu: more people are traveling to Croatia this year
This year, in May, June and July, 10 percent more…
Read more >Croatia’s Studenac Expands To Slovenia With Kea Acqusition
Croatian grocery retailer Studenac is set to enter the Slovenian…
Read more >Related news
A new office responsible for food safety and retail trade can be established under the leadership of Márton Nagy
A new top organization called the National Trade Office could…
Read more >K&H: Almost two-thirds of businesses are planning development
The majority of domestic micro, small and medium-sized enterprises, 61…
Read more >KSH: industrial production fell by 8.2 percent in June
In June 2024, the volume of industrial production was 8.2…
Read more >