Croatian retailer Fortenova said it has commenced the process of assessing the potential sale of its agricultural business division.
Fortenova Group hopes to receive non-binding offers from potential buyers by the end of the first quarter, after which it will decide on moving ahead with the potential sale process, the company noted.
The process will depend on the quality of non-binding offers from potential strategic partners, similar to the sale of its frozen food business unit to Nomad Foods in 2021 for approximately €615 million.
The company will focus on buyers willing to offer a fair price and contribute to the further development and preservation of employment and the tradition of agricultural production in Croatia.
Investment In Agricultural Business
In recent years, Fortenova made 'significant investments' in the agricultural sector to boost the overall value of the business division.
Last year, it invested more than €60 million in renewing agricultural machinery in the business unit.
Fortenova plans to use the proceeds from the sale to reduce debts as well as for strategic investments in other core business areas, such as retail and food.
The division includes agriculture and processing company Belje, PIK Vinkovci, and Vupik, which focuses on pig breeding as well as other agricultural segments.
In October, the Croatian multinational food and retail company reported €2.7 billion in total revenue in the first-half of 2023, registering an increase of 9% over the same period last year.
All of Fortenova's business divisions recorded growth in total revenue in the first half, albeit with reduced operating profits due to increases in electricity and raw material costs and salaries, as well as price limits on the selling price for specific product categories imposed by national governments.
