Podravka-owned food group Žito has finalized a deal to acquire the Zvijezda businesses in Croatia and Slovenia from Fortenova.
Croatia-headquartered Zvijezda Group, recognized for producing sauces, condiments, spreads, and cooking oils, will retain its independent operation post-transaction, pending local competition body approval, according to a joint statement.
The final purchase price will be determined upon completion of the deal, also reflecting the financial performance of Zvijezda post-closing.
Zvijezda’s prominent brands include its namesake line, Margo, and Omegol. Last year, the business generated revenues of €155m ($180m) and employs 440 staff, as reported on 13 November.
Marko Pipunić, president of the management board, remarked, “With this transaction, Žito Group has further strengthened its position in the regional food industry and expanded its portfolio of products and production capabilities.”
He further stated, “Žito Group has always been focused on growth and development. Through Zvijezda, it has acquired additional strength and breadth for advancing its brands, production, and market presence.”
This acquisition follows a restructuring of Fortenova, previously operating as Agrokor. The sale of the Zvijezda business marks another step in the Croatian group’s strategy of divesting selected food and drinks assets.
Fortenova’s CEO, Fabris Peruško, emphasized, “The exit from this operation is part of our ongoing process to divest from agricultural production companies.”
He added, “Our focus in this process was also to find partners who would, in addition to paying a fair price, contribute significantly to the future development and preservation of employment, tradition, and the market position that Zvijezda holds.”
Serving primarily Croatia, Slovenia, Serbia, and Bosnia & Herzegovina, Fortenova’s portfolio includes the Pik Vrbovec brand for fresh and processed meats, Dijamant spreads, and the Sarajevski Kiseljak mineral water brand. It also owns retail chains like Mercator, Konzum, and Tisak.
Earlier this year, Croatian alcoholic drinks group Badel 1862 made headlines by acquiring local wine, cheese, and olive oil maker Agrolaguna from Fortenova.
Moreover, recent divestitures include a variety of food and drink assets sold to Podravka, such as the fruit and vegetable processor Pik-Vinkovci and the grains wholesaler Felix. Podravka also acquired Belje, known for its wines, dairy products, and cured meats.
Žito Group, a diversified business headquartered in Slovenia, operates in Croatia as Žito Inc. It stands as the largest egg supplier in the country and ranks as the second-largest pork business through its subsidiary, Dobro Meat. Its brand portfolio includes Žito, Zlato polje, and 1001 CVET, covering product categories like bakery, pasta, rice, cooking oils, and confectionery.
Additionally, Žito Group is involved in animal feed and electricity production. Pipunić noted, “We believe that the synergies between Žito Group’s existing production facilities and Zvijezda will drive greater efficiency, innovation, and competitiveness in the market.”
