Croatia-based food company Atlantic Grupa has signed a deal to buy Serbian firm Foodland.

Atlantic Grupa revealed yesterday the two sides were in talks but confirmed they had reached agreement today. Financial details were not disclosed.

According to the local press, Foodland has for some time been looking to recapitalise its business.

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In a statement to announce the deal, Foodland majority owner Vaso Lekic said: “The future development of the company and its product range need significant investment, and for this reason we have at length discussed the nature of capital increase with a series of potential partners. Atlantic Grupa has proven a very serious collaborator who is acquainted with the nature of our business, the way we work, the value of our brands, the gravity and commitment with which we approach our products.

“Based on our deliberations we are convinced that we are dealing with a strategic investor who will know how to handle the Foodland brand, develop our portfolio, and amplify our market position. This is evident in the expertise demonstrated during due diligence and purchase negotiations, as in the overall experience and results from brands already acquired in Atlantic’s system.”

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Foodland, which is expected to generate sales of EUR8m (US$10m) this year, sells products including spreads, sauces, syrups and juices. Its sells products under brands including Bakina tajna, or Granny’s Secret.

“This brand has a substantial potential for development within the region and beyond, where it already achieves excellent results. This acquisition thus meets both aims as defined in Atlantic’s development strategy: expanding the current brand portfolio, and internationalization,” Atlantic Grupa president and CEO Emil Tedeschi said.

The Foodland range is present in over 20 countries, with around a third exported to markets outside the Balkans region, including to western Europe, the US and Australia.