EBRD makes €50 million equity investment in Croatia’s Podravka Agri

This article is brought to you in association with EBRD.

• EBRD makes a €50 million equity investment in Croatia’s Podravka Agri
• Podravka Agri is a newly established company in the Podravka Group
• Investment to support the acquisition of Fortenova Group’s agricultural division

The European Bank for Reconstruction and Development (EBRD) is making an equity investment worth €50 million in Podravka Agri, a new subsidiary of Croatia’s Podravka Group. 

The investment will support Podravka Agri’s acquisition of Fortenova Group’s agricultural division, which includes Belje plus, PIK-Vinkovci plus, Vupik plus, Energija Gradec, Belje Agro-Vet plus and Felix plus. Podravka Agri will manage the newly acquired agricultural segment, with the purchased companies continuing to operate as independent entities.

Through its investment, the EBRD will support Podravka Agri in restructuring Fortenova Group’s agricultural divisions. The project aims to enhance the acquired companies’ competitiveness through a comprehensive value creation plan, including the adoption of sustainable farming practices. It also focuses on improving the companies’ corporate governance to strengthen strategic decision-making capacity following the acquisition.

Charlotte Ruhe, EBRD Managing Director for Central and South Eastern Europe, said: “We are pleased to announce our participation in one of the largest acquisitions in the region in recent years. It is an honour to be able to provide support to Podravka, our longstanding client, in this significant endeavour. This acquisition is an exciting opportunity and, in collaboration with Podravka, we are committed to unlocking its full potential by leveraging the EBRD’s track record in the food and agribusiness sector across south-eastern Europe.”

Martina Dalić, President of the Management Board of Podravka, said: “By signing this agreement with the EBRD, we have taken an important step towards finalising the acquisition of the agricultural segment of the Fortenova Group. Our partnership with the EBRD will enable the transfer of global best practices in the management of agricultural companies and further strengthen corporate governance in the newly established company, Podravka Agri. We are convinced that our cooperation will contribute to the achievement of ambitious plans for the modernisation and development of the acquired companies and their further positioning as leaders in Croatian agriculture. The employees of these companies will remain at the centre of our plans, as people are the foundation of all the successes of the Podravka Group.”

Podravka Group, a longstanding client of the Bank, is a Croatian multinational company. It operates in two segments, nutrition and pharmaceuticals with a portfolio of more than 1,800 products. Over the last two decades, the Bank has provided financing to Podravka Group across the capital-structure spectrum, from equity and energy-efficiency loans to a large, syndicated loan.

The EBRD has invested more than €4.8 billion in 254 projects in Croatia to date. The Bank’s focus is on supporting efforts to accelerate the reform process, leveraging the benefits of European Union accession to advance transition, and restructuring and commercialising public-sector enterprises.