Podravka Group has completed the acquisition of Fortenova Group’s agriculture division, finalising the takeover of Belje, Vupik, PIK Vinkovci, Energija Gradec, Belje Agro-Vet and Felix.
In July 2024, Fortenova agreed to sell its agricultural division to Podravka for €333 million, on a cash-/debt-free basis.
At the time, Fabris Peruško, chief executive and board member of Fortenova, described it as “the best-possible decision for the agricultural companies” and its employees.
Podravka Agri will manage the agricultural segment in what is described as a ‘historic moment’ for the company.
A Sustainable Future For Podravka
Peruško stated, “Exactly a year ago, we sent information materials about the six companies constituting the agriculture division to a number of interested buyers, initiating the process of gauging interest for their potential divestment. Only a year later, we are able to completely close this highly complex divestment transaction.”
Martina Dalić, chairperson of the management board of Podravka and the supervisory board of Podravka Agri, stated that the company is opening a new chapter in its history.
“Successfully completing this demanding process confirms our commitment to the development of the Croatian economy and local agriculture. [...] This acquisition is an opportunity for all of us to jointly build a sustainable and successful future for the Podravka Group and all its members,” Dalić added.
What’s Next For Podravka?
Firstly, Podravka Agri will become the third pillar of Podravka Group’s operations, led by Davor Doko, who is also a member of Podravka’s management board.
Doko’s primary responsibility will be ensuring the efficient integration of the acquired agricultural companies.
With this transaction, Podravka Group will surpass the €1 billion in revenue and employ more than 8,800 people.
Fortenova Group’s agriculture division comprises 12 segments, ranging from crop-farming on 32,000 hectares to producing meat and dairy products.
Additionally, the business owns bio-power plants and the reloading port of Vukovar.
The division is also linked to several hundred subcontractors through contract farming, as well as individual contract farmers involved in crop, vegetable and fruit production.
Podravka and its newly established subsidiary, Podravka Agri, have secured a €50 million equity investment from the European Bank for Reconstruction and Development (EBRD) to support the acquisition.
Following the transaction, Podravka will own 84.99% of Podravka Agri, while EBRD will hold a 15.01% stake, with agreements outlining their co-ownership structure, management rights, and conditions for EBRD’s potential exit.
