Podravka Completes Takeover of Žito
Croatian food group Podravka has increased its stake in Slovenian peer Žito to almost 87% after acquiring 35% of shares from minority shareholders.
Last month, Podravka acquired a 51.54% stake in Žito from a consortium of shareholders led by state-fund Slovenian Sovereign Holding (SSH) for €33 million. The Croatian company will pay a further €22.6 million for the shares acquired.
The takeover will make Podravka a leading supplier in the Slovenian food market with combined annual revenue of €119 million. Podravka will enable Žito to expand to other markets where the Croatian company is present, while the Slovenian market will become one of its most important.
The main activities of Žito are the production of bakery, confectionary and milled products, frozen foods, candy, chewing gum, chocolate, biscuit pastry, pasta, spices, tea, rice and retailing. Its main brands are Zlato polje, Maestro, Natura, Gorenjka, 1001 cvet and Šumi.
The Slovenian company generated sales revenues of €82.3 million in the first nine months of 2015 (+0.7% y/y), while net profit dropped by 10.7% to €1.9 million. Its products are exported to 31 European countries, as well as to Canada, USA and Japan.
The sale of Žito is only the latest instance of a major Slovenian food and beverage industry company being acquired by a foreign investor in recent years.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.