Podravka secures US$361M deal to acquire Fortenova Group’s agri-food subsidiaries | Food Business Africa

CROATIA – Podravka, a Croatian food supplier, has announced a significant expansion with the acquisition of several food and drink businesses from Fortenova Group, valued at €333m (US$361m). 

This deal is subject to approval from the Croatian Competition Agency and other regional regulators, according to a statement from Podravka.

Designated as the “preferred partner” for this transaction earlier in the month, Podravka paid aUS$116.2M deposit for the takeover of Fortenova’s six agri-food subsidiaries. 

The acquisition includes notable brands such as fruit and vegetable processor Pik-Vinkovci and grains wholesaler Felix.

Among the acquisitions, Belje stands out as a key asset, producing a diverse range of products including wines, dairy items, cured meats, and tomatoes under its brand name, catering to both domestic and international markets. 

Another significant company in the deal is Vupik, known for its operations in cattle and pig farming as well as the cultivation of cereals and vegetables. 

Vupik also produces Grasevina and Frankovka wines under the Goldschmidt and Golubica labels.

Podravka anticipates this acquisition will enhance its status as a leading domestic company with a strong international revenue stream. 

Post-acquisition, these companies will form a new division within Podravka, named Podravka Agri, complementing its existing Food and Pharmaceuticals divisions.

The financing for this purchase is secured through commercial bank loans, with the European Bank for Reconstruction and Development (EBRD) participating as a financial partner. 

EBRD will hold a minority stake in the newly formed Podravka Agri unit, while Podravka will maintain over 80% ownership.

Martina Dalić, president of Podravka, emphasized the strategic importance of this acquisition, highlighting its role in modernizing and boosting efficiency in crop and vegetable production.

 Dalić also pointed to the enhanced relationships and expanded network of cooperatives resulting from this deal.

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