Croatia’s Fortenova Group has accepted Bosqar Invest’s buyout proposal for the local meat producer, Pik Vrbovec. This strategic move is set to align with current trends in the food and beverage industry, particularly amidst growing demands for efficient and resilient food production systems.
On April 2, Bosqar Invest announced its binding offer to acquire 100% of Pik Vrbovec. Following this announcement, the two parties will negotiate the final transaction terms, signaling another step in Fortenova’s divestiture of agricultural assets.
Fabris Peruško, CEO of Fortenova Group and a member of its management board, emphasized the company’s strategic pivot: “By exiting agriculture, the Fortenova group already began a strategic turnaround in its business with a focus on activities and services that are not directly related to primary production and processing.” He noted that exiting from Pik Vrbovec, which is heavily rooted in agricultural production, was a natural progression for the company.
Fortenova, which emerged as the successor to the Agrokor conglomerate, has actively pursued divestitures since adopting a new business strategy in 2019. This strategy has included notable sales, such as the Zvijezda sauces and oils business in November to Podravka-owned Žito and the Serbian edible oils producer, Dijamant, to the MK Group earlier this year.
In July, Fortenova reported a reduction in gross debt by over one-third, decreasing from approximately €2 billion to €650 million ($751.1 million).
Upon completion of the transaction, Bosqar will take control of Croatia’s largest meat and processed meat supplier through its Future Food division. This division also incorporates Slovenian agri-food leader Panvita and bakery group Mlinar, for which Bosqar acquired a 67% indirect stake in July.
Pik Vrbovec operates a vertically integrated model, encompassing ownership of pig and cattle farms along with primary production in Belje. This structure is viewed as “highly complementary” to Panvita’s existing integrated operations.
With about 1,500 employees, Pik Vrbovec generates €337 million in revenue and exports its products to around 20 countries. Darko Horvat, president of Bosqar’s management board, called this acquisition a “landmark step” towards building a robust regional platform in the agri-food and meat-processing sector.
Horvat stated: “Most recently, escalating tensions in the Middle East have underscored how crucial food security is and will remain for the foreseeable future. Against this backdrop, Bosqar sees its continued investments in Future Food as a strategic contribution to strengthening supply resilience in Croatia and across the region.”
Subject to finalizing a share purchase agreement and securing necessary regulatory approvals and financing, the combined Future Food platform is expected to achieve pro-forma revenues of approximately €640 million and employ nearly 4,800 staff by 2024.
Post-acquisition, the division aims to exceed €1 billion in annual revenue and achieve over €100 million in EBITDA by 2026. This expanded platform will feature an integrated agricultural base capable of producing around 86,000 tonnes of annual meat, fruit, vegetable, and bakery outputs, alongside facilities for 120,000 pigs and 4.5 million broiler chickens.
Finally, financing for the deal will be secured through a secondary public offering (SPO), further solidifying Bosqar’s position in the evolving food and drink business landscape.