Fortenova Group and Nomad Foods Limited closed a 615 million euro sales deal on Monday for Fortenova's frozen food business which consists of the Ledo brand and several smaller associated enterprises.
Upon completion of the deal, the UK-based Nomad Foods will cement its position as Europe's leading frozen food company and one of the largest in the world which includes a portfolio of iconic local brands in Croatia, Serbia, Bosnia and Herzegovina and several other Southeast European countries.
The completion of the transaction is subject to regulatory approvals in the applicable markets as well as from Fortenova Group's own shareholders.
"With completion of this transaction we will fulfil a key prerequisite for the capital structure optimization that will enable strong investment in our businesses and drive their future growth," said Fabris Peruško, Fortenova Group's Chief Executive Officer and member of the Board of Directors.
"With this transaction, Fortenova Group achieved its three main goals. One, to achieve the maximum value for this transaction; two, to bring in a good strategic partner that will allow for the further development of the frozen foods sector within our markets; and third, this transaction will allow us to invest more into our core businesses," said Peruško.
Prime Minister Andrej Plenković called it a major transaction. "The buyer is Nomad Foods, one of the biggest frozen food companies in the world, and I believe the deal they negotiated was the best possible price. What is most important, is that Ledo and its sister company Frikom in Serbia and Bosnia and Herzegovina continue to make their products."
Nomad Foods is listed on the New York Stock Exchange. And in addition to Great Britain, its largest markets are in Italy, Germany, Sweden and France, accounting for a fourteen percent share of the Western European market for frozen foods, which is twice as much as its closest competitor.