Fortenova accepts takeover bid for Croatia meat group Pik Vrbovec

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

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

The 2 sides volition present negociate the last transaction presumption which volition spot Fortenova dispose of different agriculture asset.

Fabris Peruško, the subordinate of the absorption committee and CEO of Fortenova Group, the existent proprietor of Pik Vrbovec, said: “By exiting agriculture, the Fortenova radical already began a strategical turnaround successful its concern with a absorption 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 the company.”

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

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

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

The part already includes Slovenian agri-food radical Panvita arsenic good arsenic bakery radical 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 operation 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, the president of the absorption committee astatine Bosqar, called the determination a “landmark step” successful its program to physique a “strong” determination level successful the agri-food and meat-processing industry.

Horvat said: “Most recently, escalating tensions successful the Middle East person underscored however important nutrient information is and volition stay for the 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 the region.”

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