Croatian food group Podravka is set to purchase a number of food and drinks companies belonging to local agri-food business Fortenova Group.
Both groups have signed an agreement to appoint Podravka as “the preferred partner” for the acquisition of its agricultural unit, according to a statement released today (12 July).
The Koprivnica-based business is expected to pay a deposit of €15m for the takeover of Fortenova’s six agri-food subsidiaries.
It is to pay for the transaction using loans from commercial banks and an “expected partnership with the European Bank for Reconstruction and Development”.
The clutch of food and drink businesses in the deal include the fruit and vegetables processor Pik-Vinkovci, and grains wholesaler Felix.
Pordravka will also acquire Belje, which produces wines, dairy products, cured meats and tomatoes under its namesake brand for the domestic and global markets.
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By GlobalDataAnother food and beverage group included in agreement 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 Goldschmidt and Golubica labels.
Once the transaction is complete, these companies are expected to sit under a third category within Podravka, accompanying its Food and Pharmaceuticals segments.
All of the businesses will remain working “as independent commercial entities”, following the closure of the deal.
The Kviki salty snacks maker said it would boost the “modernisation and increased productivity of the agricultural companies” by investing an undisclosed sum “in new technologies, infrastructure, and human resources”.
It is unclear whether any jobs will be affected as a result of the transaction, but Podravka said it “would be committed to continuously improving the working conditions, rights, and material status of employees”.
Set up in 1934, Podravka’s portfolio includes jarred vegetables, condiments, soups, salty snacks, jams and prepared meats. It operates in over 60 markets worldwide.
The group first indicated plans to potentially purchase Fortenova’s agri-food assets in April. In a statement on its website at the time, the group said it had been “invited” by Fortenova to “participate in the process of due diligence”.
In June, the European Commission granted approval for Fortenova to be acquired by OpenPass, led by Croatian businessman Pavao Vujnovac.
The move was approved following a long process which involved hurdles with sanctioned shareholders.
OpenPass takes full control of Fortenova’s three business operations in agriculture, food and retail, which encompass “Croatia, Slovenia and various non-EU countries in the Balkans”, the EC filing said.
