Podravka-owned food group Žito has agreed a deal to buy the Zvijezda businesses in Croatia and Slovenia from Fortenova.
Croatia-headquartered Zvijezda Group, which produces sauces, condiments, spreads and cooking oils, will continue to operate independently post the transaction, which is subject to approval by the local competition body, according to a joint statement.
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The final purchase price will be set upon completion of the deal and will also be determined by the financial performance of Zvijezda post-closing.
Zvijezda’s main brands include its namesake lines, along with Margo and Omegol. The business generated revenues last year of €155m ($180m) and employs 440 staff, according to the statement issued yesterday (13 November).
“With this transaction Žito Group has additionally strengthened its position on the regional food-industry market and expanded its product and production capacity portfolio,” Marko Pipunić, president of its management board, said.
“Žito Group has always been originally focused on growth and development, and with Zvijezda it has now gained additional strength and the width required for another step forward when it comes to brands, production and market positions.”
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By GlobalDataIn what was formerly operating as the trading company Agrokor before undergoing a restructuring exercise, Fortenova’s sale of the Zvijezda business is the latest disposal of select food and drinks assets by the Croatian group.
Fabris Peruško, Fortenova’s CEO, said: “The exit from this operation is a continuation of the process that Fortenova Group started with the divestment of the companies with agricultural production.
“As in all previous divestment processes, our focus in this process was also on finding partners that would, in addition to paying a fair price, make the maximum contribution to the further development and preservation of employment, tradition and the market position that Zvijezda holds.”
Fortenova supplies food and drink products mainly to Croatia, Slovenia, Serbia, and Bosnia & Herzegovina. It owns the Pik Vrbovec brand of fresh and processed meats, Dijamant spreads, the Roto line of soft and alcoholic drinks, and the Sarajevski Kiseljak brand of mineral waters.
Fortenova also owns and operates retail chains with the likes of Mercator, Konzum and Tisak.
Earlier this year, Croatian alcoholic drinks group Badel 1862 struck a deal to acquire local wine, cheese and olive oil maker Agrolaguna, and the winery Vinarija Novigrad from Fortenova.
Divestitures have included a clutch of food and drinks assets sold to fellow CPG business Podravka. The deal featured fruit and vegetables processor Pik-Vinkovci and grains wholesaler Felix.
Podravka also took over Belje, which produces wines, dairy products and cured meats.
Meanwhile, Žito Group is a diversified business headquartered in Slovenia and operates in Croatia as Žito Inc.
The group is the largest egg supplier in Croatia and the second-largest pork business operating in meat through Dobro Meat. Its portfolio of brands includes Žito, Zlato polje and 1001 CVET, amongst others, across product areas such as bakery, pasta, rice, cooking oils and confectionery.
Žito Group is also engaged in animal feed and electricity production.
Pipunić added: “We believe that the synergies between Žito Group’s existing production facilities and Zvijezda will drive greater efficiency, innovation, and competitiveness in the market.”
