Fortenova Accepts Takeover Bid For Croatia Meat Group Pik Vrbovec

Credit: Yulia Furman/Shutterstock.com.

Croatia’s Fortenova Group has accepted Bosqar Invest’s buyout connection for section nutrient shaper Pik Vrbovec.

In a connection connected 2 April, nan Croatian finance institution said it submitted a binding connection to get 100% of Pik Vrbovec.

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The 2 sides will now discuss nan last transaction position which will spot Fortenova dispose of different agriculture asset.

Fabris Peruško, nan personnel of nan guidance committee and CEO of Fortenova Group, nan existent proprietor of Pik Vrbovec, said: “By exiting agriculture, nan Fortenova group already began a strategical turnaround successful its business pinch a attraction connected activities and services that are not straight related to superior accumulation and processing. Since Pik is mostly based connected cultivation production, it was earthy for america to find different proprietor for nan company.”

Fortenova, nan successor to nan Agrokor conglomerate, has pursued divestitures since embarking connected a caller business strategy successful 2019. These see nan income of nan Zvijezda sauces and oils business to Podravka-owned Žito successful November and Serbian edible oils producer Dijamant to nan MK Group successful January.

In July, Fortenova reported it had trim gross debt by much than a 3rd to €650m ($751.1m) from arsenic overmuch arsenic €2bn.

The deal, erstwhile completed, would spot Bosqar return complete Croatia’s largest nutrient and processed-meat shaper done its Future Food division.

The section already includes Slovenian agri-food group Panvita arsenic good arsenic bakery group Mlinar, wherever Bosqar acquired a 67% indirect ownership successful July.

Pik Vrbovec operates a vertically integrated exemplary that includes ownership of pig and cattle farms and superior accumulation successful Belje.

The building makes it “highly complementary” to Panvita’s ain integrated model, noted Bosqar.

Pik Vrbovec has a workforce of astir 1,500 and generates €337m successful revenue. It exports to astir 20 countries.

Darko Horvat, nan president of nan guidance committee astatine Bosqar, called nan move a “landmark step” successful its scheme to build a “strong” location level successful nan agri-food and meat-processing industry.

Horvat said: “Most recently, escalating tensions successful nan Middle East person underscored really important nutrient information is and will stay for nan foreseeable future. Against this backdrop, Bosqar sees its continued investments successful Future Food arsenic a strategical publication to strengthening proviso resilience successful Croatia and crossed nan region.”

Subject to signing a stock acquisition statement and obtaining regulatory approvals and financing, nan mixed Future Food level would person pro-forma revenues of astir €640m and astir 4,800 labor based connected 2024 figures.

On a pro-forma ground aft nan deal, nan section is expected to transcend €1bn successful yearly gross and €100m successful EBITDA successful 2026.

The enlarged level would characteristic an integrated cultivation guidelines pinch astir 86,000 tonnes of yearly meat, fruit, rootlike and bakery output, arsenic good arsenic capacity for 120,000 pigs and 4.5 cardinal broiler chickens.

The woody will beryllium financed done a secondary nationalist offering (SPO).