Podravka-owned Žito Buys Zvijezda Food Group From Fortenova

Credit: HelgaQ/Shutterstock

Podravka-owned nutrient group Žito has agreed a woody to bargain nan Zvijezda businesses successful Croatia and Slovenia from Fortenova.

Croatia-headquartered Zvijezda Group, which produces sauces, condiments, spreads and cooking oils, will proceed to run independently station nan transaction, which is taxable to support by nan section title body, according to a associated statement.

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The last acquisition value will beryllium group upon completion of nan woody and will besides beryllium wished by nan financial capacity of Zvijezda post-closing.

Zvijezda’s main brands see its namesake lines, on pinch Margo and Omegol. The business generated revenues past twelvemonth of €155m ($180m) and employs 440 staff, according to nan connection issued yesterday (13 November).

“With this transaction Žito Group has additionally strengthened its position connected nan location food-industry marketplace and expanded its merchandise and accumulation capacity portfolio,” Marko Pipunić, president of its guidance board, said.

“Žito Group has ever been primitively focused connected maturation and development, and pinch Zvijezda it has now gained further spot and nan width required for different measurement guardant erstwhile it comes to brands, accumulation and marketplace positions.”

In what was formerly operating arsenic nan trading institution Agrokor earlier undergoing a restructuring exercise, Fortenova’s waste of nan Zvijezda business is nan latest disposal of prime nutrient and drinks assets by nan Croatian group.

Fabris Peruško, Fortenova’s CEO, said: “The exit from this cognition is simply a continuation of nan process that Fortenova Group started pinch nan divestment of nan companies pinch cultivation production.

“As successful each erstwhile divestment processes, our attraction successful this process was besides connected uncovering partners that would, successful summation to paying a adjacent price, make nan maximum publication to nan further improvement and preservation of employment, contented and nan marketplace position that Zvijezda holds.”

Fortenova supplies nutrient and portion products chiefly to Croatia, Slovenia, Serbia, and Bosnia & Herzegovina. It owns nan Pik Vrbovec marque of caller and processed meats, Dijamant spreads, nan Roto statement of soft and alcoholic drinks, and nan Sarajevski Kiseljak marque of mineral waters.

Fortenova besides owns and operates unit chains pinch nan likes of Mercator, Konzum and Tisak.

Earlier this year, Croatian alcoholic drinks group Badel 1862 struck a deal to get section wine, food and oliva lipid shaper Agrolaguna, and nan winery Vinarija Novigrad from Fortenova.

Divestitures person included a clutch of nutrient and drinks assets sold to chap CPG business Podravka. The woody featured consequence and vegetables processor Pik-Vinkovci and grains wholesaler Felix.

Podravka besides took complete Belje, which produces wines, dairy products and cured meats.

Meanwhile, Žito Group is simply a diversified business headquartered successful Slovenia and operates successful Croatia arsenic Žito Inc.

The group is nan largest ovum supplier successful Croatia and nan second-largest pork business operating successful nutrient done Dobro Meat. Its portfolio of brands includes Žito, Zlato polje and 1001 CVET, amongst others, crossed merchandise areas specified arsenic bakery, pasta, rice, cooking oils and confectionery.

Žito Group is besides engaged successful animal provender and energy production.

Pipunić added: “We judge that nan synergies betwixt Žito Group’s existing accumulation accommodation and Zvijezda will thrust greater efficiency, innovation, and competitiveness successful nan market.”