Croatian alcoholic drinks group Badel 1862 has struck a deal to acquire local wine, cheese and olive oil maker Agrolaguna and winery Vinarija Novigrad from Fortenova Group.
The financial details of the transaction were undisclosed.
In a joint statement, Badel 1862 said the deal would “strengthen its leadership position in the production of quality and premium wines on the Croatian market”.
Darko Knez, president of the management board of Badel 1862, added: “Badel 1862 is the leading Croatian company in the production of spirits and wines, that’s why the acquisition of Agrolaguna is a logical step in materialising our development plans and a strong incentive for the additional strengthening of the domestic production.
“Having recognised the valuable achievements of Agrolaguna in the past, the high quality of its products as well as the knowledge and commitment of its employees, we believe that together we can open up a new chapter in the development of both companies.”
Badel 1862 already owns vineyards and wine brands in the Dalmatia region of the country and in continental Croatia.
The statement said the deal makes Badel 1862 the only company in Croatia “with a portfolio covering all the key wine regions”.
Following the deal, Badel 1862 will be the “largest producer of wine grape varieties” in Croatia, with 800 hectares of vineyards, the statement read. The transaction will increase its wine production volumes from 2.5m to 6.5m litres.
Fortenova said the sale was part of its strategy to focus on retail and food processing. The company offloaded its agricultural division to Croatia food and drinks group Podravka last July.
Fortenova said Agrolaguna accounts for less than 1% of the company’s operating profits.
Fabris Peruško, the CEO of Fortenova, said: “Badel 1862 is a partner that, given their experience in the industry, can secure the further development of Agrolaguna, the strengthening of its market positions and values and the preservation of jobs.
“Agrolaguna comes with a strong portfolio of brands that preserve the Istrian heritage and traditions, and their global quality has been acknowledged by numerous international and local awards. We believe that this transaction will provide for the development of new products that will additionally promote Croatian brands on the global scene.”
