Croatia’s Žito Group has acquired a majority interest in local meat peer MI Ravlić.
Žito Group, which operates out of the Slavonia region in north-east Croatia, did not reveal the size of the stake nor the price it has paid for the holding in the business, otherwise known as Mesna Industrija Ravlić.
In a statement provided to Just Food, Žito descibed the deal as a “strategic partnership” and one that will “give new impetus to pig farming and the meat processing industry in Slavonia”.
It requires clearance from Croatia’s competition authority.
MI Ravlić supplies retail chains in Croatia and is regarded as one of the largest meat producers in the country, according to Žito. It also operates a network of butchers shops numbering 30 branches.
Žito added in the statement that pig rearing and supply forms the biggest part of its own business, making the company the second-largest pig producer in Croatia. It operates ten farms with an annual pig “fattening” capacity of 175,000 and plans to increase that with the stake in MI Ravlić.
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By GlobalDataMato Božić, the board member at Žito in charge of agriculture, said the investment will boost capacity by 90,000 pigs for the Dobro pork brand owner.
“This acquisition fits our vision of expanding pig breeding capacities and developing our meat industry with Dobro,” Božić added. “By joining MI Ravlić, new horizons are opening up in production and distribution capacities.”
Meanwhile, Jozo Ljubičić, the Žito board member in charge of finance, said: “We plan significant investments in the Meat Industry Ravlić, which will increase the capacity and efficiency of the factory and ensure significant growth in the company’s business and employment capacity, which guarantees job security for employees.”
MI Ravlić will retain its trading and brand names. The business dates it origins back to 1960, first as a butchers and then expanding into processing.
A slaughterhouse was opened in the mid-1990s in Petrijevci, which is also in the Slavonia region. A pork processing plant was then added in 2000, followed by a more “modern” slaughterhouse in 2008, according to the statement.
Mario Ravlić, the president of MI Ravlić, said: “In Žito, we have gained a strong and reliable partner who, in synergy with our knowledge and experience, guarantees the preservation of the 65-year-long tradition and business story of Ravlić.
“With its financial strength and business model, Žito Group will, we are convinced, lead to a new era of development and growth of our business in the fastest way.”
