Croatian coffee and tea company, Franck has sold its stake in Adria Snack Company to Netherlands-based Intersnack International.
The value of the transaction was not made public, but it is being speculated that it could amount to around €12 million.
According to a report in the Croatian local daily, Večernji List, the money received from the transaction was used to pay off debts owed by the company to the country's second largest bank, Privredna Banka Zagreb.
In 2017, the company reported a turnover of HRK 131 million (€17.7 million) and a net profit of HRK 1.9 million (€256.700).
A Difficult Period
Franck had been going through turbulent times following the recent Agrokor crisis, which affected the group's major suppliers.
In 2017, Franck entered into a strategic investment partnership with Croatian grocery retailer and long-time business partner, Tommy, to fend off a hostile takeover and secure liquidity.
Better Times Ahead
The recent settlement of the Agrokor crisis could be the promise of a better future for Franck.
Presently, the company plans to continue with the restructuring process and is working on agreements with lenders on the refinancing of loans.
The Zagreb-based joint venture company was set up by Franck and Intersnack in October 2015 with equal shares of capital.
Adria Snack Company is a market leader in Croatia in the segment of savoury snacks and is also a leading player in the Adria region.
The product portfolio includes Franck's entire snack range comprising Čipi Chips, Kroki Kroket and Tip Top as well as Intersnack brands including Chio, Pom-Bar and Kelly.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
