The Croatian group Fortenova has accepted the purchase offer of Bosqar Invest by the local meat producer Pik Vrbovec.
In a statement on April 2, the Croatian investment company said it had submitted a binding proposal to acquire 100% of Pik Vrbovec.
The two parties will now negotiate the final terms of the transaction in which Fortenova will divest another agricultural asset.
Fabris Peruško, member of the board of directors and CEO of the Fortenova Group, current owner of Pik Vrbovec, said: “By leaving agriculture, the Fortenova group has already started a strategic change in its business by focusing on activities and services that are not directly related to primary production and processing. Since Pik is mainly based on agricultural production, it was natural for us to find another owner for the company.”
Fortenova, the successor to the Agrokor conglomerate, has sought divestments since embarking on a new business strategy in 2019. These include the sales of sauces and oils business Zvijezda to Podravka-owned Žito in November and of Serbian edible oils producer Dijamant to MK Group in January.
In July, Fortenova said it had reduced gross debt by more than a third to 650 million euros ($751.1 million) from 2 billion euros.
The deal, once completed, would allow Bosqar to take over Croatia’s largest meat and processed meat producer through its Future Food division.
The division already includes Slovenian agri-food group Panvita, as well as bakery group Mlinar, where Bosqar acquired an indirect 67% stake in July.
Pik Vrbovec operates a vertically integrated model that includes ownership of pig and livestock farms and primary production in Belje.
The structure makes it “highly complementary” to Panvita’s own integrated model, Bosqar said.
Pik Vrbovec has a workforce of approximately 1,500 people and generates €337 million in revenue. Exports to about 20 countries.
Darko Horvat, chairman of Bosqar’s board of directors, called the move a “historic step” in its plan to build a “strong” regional platform in the agri-food and meat processing industry.
Horvat said: “More recently, escalating tensions in the Middle East have highlighted how crucial food security is and will continue to be for the foreseeable future. In this context, Bosqar views its continued investments in Future Food as a strategic contribution to strengthening supply resilience in Croatia and across the region.”
Subject to signing a share purchase agreement and obtaining regulatory approvals and financing, the combined Future Food platform would have pro forma revenues of around €640 million and around 4,800 employees based on 2024 figures.