What's Happening?
Žito Group, owned by Podravka, has agreed to purchase the Zvijezda businesses in Croatia and Slovenia from Fortenova. Zvijezda, known for producing sauces, condiments, spreads, and cooking oils, will continue
to operate independently following the transaction, which is subject to approval by the local competition body. The acquisition strengthens Žito Group's position in the regional food industry market, expanding its product and production capacity portfolio. The final purchase price will be determined by Zvijezda's financial performance post-closing. Zvijezda generated revenues of €155m ($180m) last year and employs 440 staff.
Why It's Important?
The acquisition of Zvijezda by Žito Group represents a strategic move to enhance its market position and expand its product offerings. This transaction is part of Fortenova's ongoing divestment of select food and drinks assets, following its restructuring from the former trading company Agrokor. The deal is expected to drive greater efficiency, innovation, and competitiveness in the market, benefiting both companies and preserving employment and tradition within the industry.
What's Next?
The completion of the acquisition is contingent upon approval by the local competition body. Žito Group anticipates synergies between its existing production facilities and Zvijezda, which could lead to increased market efficiency and innovation. Fortenova's CEO, Fabris Peruško, emphasized the importance of finding partners that contribute to the development and preservation of Zvijezda's market position.
Beyond the Headlines
The acquisition highlights the ongoing consolidation within the food industry, as companies seek to strengthen their market positions and expand their product portfolios. This trend may lead to increased competition and innovation, benefiting consumers with a wider range of products and potentially lower prices.
