Croatia-based food group Podravka has struck a deal to buy over 51% of Slovenian confectionery-to-pasta firm Zito for EUR33m.
Podravka has been linked to the 51.55% stake – owned by a consortium of investors – in recent weeks.
Go deeper with GlobalData
Announcing the deal, which remains subject to regulatory approval, Podravka said the two companies had a "very complementary product range".
"What is also significant is the fact that Zito has a leading position in several product categories, such as bakery products, flour and mill products, teas, mono-seasonings and frozen bakery and other products," Podravka said.
"With this purchase of shares of Zito, Podravka consolidates its position – i.e. becomes a leader in several product categories – significantly improving its market strength and negotiating power with the buyers."
See Also:
Slovenian sovereign investment fund SDH had been one of the members of the selling consortium. Podravka, it said, "submitted the best bid" and added: "According to the assessment by the consortium of cellers, Zito will acquire a long-term strategic and experienced owner from the food and beverage industry, enabling Zito to grow and develop outside Slovenia."
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataZito's brands include its namesake bread, Zlato Polje pasta and Gorenjka chocolate. Last year, the company generated sales of EUR113.7m, operating profit of EUR3.7m and net profit of EUR3m. In 2013, Zito saw sales of EUR110.9m, with operating profit reaching EUR3.1m and net profit hitting EUR2.2m.
