Fortenova Group signed contract with Nomad Foods to divest its frozen food business.
Fortenova Group and Nomad Foods Limited have signed a purchase agreement for the Frozen Food Business Group, which consists of Ledo plus, Ledo Čitluk and Frikom and several smaller affiliates. The value of the transaction is 615 million EUR, on a cash-free and debt-free basis, and its conclusion is planned for the third quarter of 2021. In conclusion, Nomad Foods will become the owner of the Frozen Food Business Group, which includes the leading European portfolio of cult local frozen food brands with strong recognition among consumers in Croatia, Serbia, Bosnia and Herzegovina and several other Southeast European countries. With a tradition of more than half a century, the Frozen Foods Business Group is the largest producer and distributor of ice cream and frozen foods in the markets in which it operates.
"This is a transformational transaction for the Fortenova Group, and all funds will be used to reduce the Group's indebtedness and create the Fortenova Group, which, after many years, is financially strong and able to invest fully in all its activities," said James Pearson, Chief Financial Officer. director of the Fortenova Group.
"Our frozen food business group is the market leader in the region in which we operate and I am glad that we have achieved our main goal in this sales process. The goal, in addition to achieving maximum value, was primarily to conclude this transaction with a strategic partner who will give maximum contribution to the further development of the Frozen Food Business Group and recognize the full value and potential of this industry and its people, "said Fabris Peruško, CEO and member Board of Directors of the Fortenova Group. "By concluding this transaction, we will meet a key prerequisite for optimizing the capital structure, which will allow us to invest heavily in our businesses and encourage their future growth. I am very grateful to all the people in the Frozen Food Business Group and Fortenova Group who have worked hard over the past six months to make this possible. Knowing that our frozen food will be in very good hands, we are looking forward to working with Nomad Foods as an important future business partner in this region, "concluded Peruško.
Nomad Foods is a leading European frozen food producer that has well-known brands including Iglo, Birds Ey, Findus, etc. It is headquartered in the UK and its shares are listed on the New York Stock Exchange.