Podravka Acquires Majority Stake in Slovenian Zito
On 21 April, the Croatian food, beverages and pharmaceutical company, Podravka Group, said they had signed a deal to acquire a majority stake (i.e. 51.55%) in the Slovenian food company Zito. Podravka will pay €33 million for a total of 183,386 shares (i.e. €180 per share). Podravka later intends to submit a purchase offer for the rest of the shares at the same price, in accordance with Slovenian law. Slovenian Sovereign Holding (SDH), a state investment firm in charge of the sales’ coordination, stated the process would be concluded in the following months, after the deal receives regulatory clearance.
Zito is one of the largest food producers in Southeast Europe. In 2014, the company had revenues of €113.7 million, up 3% year-on-year, with net profits surging by 37% year-on-year, to €3 million. We want Zito to expand internationally and broaden its consumer base, said Podravka CEO Zvonimir Mrsic. “Our goal in this acquisition has been for both companies to grow and perform better,” concluded Mrsic.