The Zagreb, Croatia-headquartered Fortenova Group, successor to the collapsed Agrokor agribusiness and retail trade conglomerate, announced on November 2 that it has invited selected bidders to begin due diligence analysis of its Ledo Plus, Ledo Citluk, Frikom frozen food operations. Selling the units will enable the company to reduce debt and concentrate driving growth in other areas.
Ledo is the largest manufacturer and distributor of ice cream and frozen food in Croatia. Its factory features the latest equipment and technology for the production of ice cream cones, popsicles and various other products offered in an extensive range of flavors.
“The market test has confirmed that there is strong international interest among potential investors in our frozen food business. The qualified non-binding offers come from companies with outstanding investment and operational track records,” said James Pearson, Fortenova Group’s chief financial officer.
“Our ultimate goal, over and above maximizing value, is the selection of a strategic partner who will make the maximum contribution to the further development of the frozen food group. Even though we are entering the due diligence phase now, completion of the process still depends on finding the partner who will recognize the full value and potential of this business and its people”, said CEO Fabris Peruško, who is also a member of Fortenova Group’s board of directors.
Peruško added: “In order to proactively achieve our targeted capital structure via deleveraging the company, we are ready to dispose of only one segment of the core business, which potentially would be the frozen food business group. I expect the due diligence process to be completed by the end of this year and we will continue to keep our people and the market informed of further developments in a timely manner.”