Fortenova Group has agreed to sell its agricultural division to Podravka for €333 million on a cash-free/debt-free basis.
The transaction will see Podravka acquiring the companies of Fortenova's agriculture division, comprising Belje, Pik Vinkovci, Vupik, Energija Gradec, Belje Agro-Vet and Felix, the company noted.
Fabris Peruško, Fortenova Group’s chief executive officer and member of the board of directors, stated, “The fact that we have very quickly concluded the negotiations about all the conditions of the transaction testifies that we have made the right decision by choosing Podravka and is a great precondition for a long-term partnership in this area as well.[...]
“With this agreement, both companies are opening new stages in their respective operations, and I am sure that our agriculture will be in good hands, as we have paid attention to selecting a partner that will truly make the maximum contribution to the further development of the business.”
Agriculture Division
The division operates across 12 segments, ranging from crop farming on 32,000 hectares and pig and cattle breeding to viticulture and producing meat and dairy products.
The companies from Fortenova Group’s agriculture segment also own biopower plants, silos and the reloading port of Vukovar and employ a total of more than 2,600 employees, the company noted.
The division is also connected to several hundred subcontractors through contract farms as well as individual contract farmers in crop, vegetable and fruit production.
The transaction is subject to regulatory approvals.
In February of this year, the Croatian retailer commenced the process of assessing the potential sale of its agricultural business division.
