The transaction is valued at 333 million euros and Podravka will finance this acquisition through loans from commercial banks
Following the successful conclusion of negotiations, Podravka and Fortenova group signed a sale and purchase agreement for the purchase of Fortenova group’s agricultural segment, which includes Belje, PIK Vinkovci, Vupik, Energija Gradec, Belje, Agro-Vet and Felix.
The transaction is valued at 333 million euros and Podravka will finance this acquisition through loans from commercial banks, with the European Bank for Reconstruction and Development (EBRD) expected to be a partner in the transaction.
Agricultural production, along with Food and Pharmaceuticals, is becoming a new pillar of Podravka Group’s business. To this end, Podravka has established a new company – Podravka Agri, which will manage Belje, Vupik, PIK Vinkovci and other entities. The acquired companies will continue to operate as independent trading companies within the structure of the Podravka Group, managed by the newly established company Podravka Agri. In this way, the acquired agricultural companies will retain their unique identity while benefiting from being part of a strong and successful group.
The newly established Podravka Agri is expected to have a minority share owned by EBRD, with Podravka itself holding more than 80 per cent. This anticipated partnership with EBRD will facilitate the transfer of additional knowledge and the best global practices in managing agricultural companies. It will also support the introduction of good corporate governance practices and efficient management procedures within these agricultural companies.
