Food and Beverage Business

Podravka joins firms in conducting due diligence for Fortenova agricultural assets

Podravka joins firms in conducting due diligence for Fortenova agricultural assets Fortenova Group, Podravka Food and Beverage Business

Podravka is currently conducting due diligence to potentially acquire the agri-food business of Fortenova, a fellow Croatia-based group. In a recent statement, Podravka revealed that it has been “invited” by Fortenova to participate in the due diligence process. This invitation came after Podravka made a non-binding offer for Fortenova’s agriculture division, which remains non-binding at this stage.

Only after completing the due diligence process will Podravka decide whether to submit a binding offer for the acquisition of Fortenova Group’s agricultural companies. Meanwhile, Fortenova has received several non-binding offers since expressing its intention to divest the division in January. The company is now moving forward to the next stage by inviting selected buyers for a due diligence phase, followed by final binding offers.

Fortenova aims to utilize the proceeds from the sale of its agricultural business to reduce debt and make strategic investments in core areas such as retail and food. The group’s agricultural division includes operations like Belje, PIK Vinkovci, and Vupik. On the retail side, Fortenova owns Konzum and Mercator, while its food unit consists of Zvijezda, Agrolaguna, and Jamnica.

Fabris Peruško, CEO of Fortenova, expressed optimism about the due diligence phase, emphasizing the importance of finding a strategic partner that recognizes the full value and potential of the business. Notably, the company previously divested its frozen-food assets to Nomad Foods. On the other hand, Podravka unveiled a new five-year business plan in 2021, focusing on acquisitions and investments in the agricultural segment.

It’s worth mentioning that shareholders in Fortenova recently approved an ownership restructure under a new Dutch holding company. The transfer-of-equity proposal is expected to close in the near future, with provisions to compensate sanctioned equity holders. This development underscores the evolving landscape of the food and beverage industry, where strategic partnerships and investments play a pivotal role in driving growth and innovation.

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FAB Team