The European Bank for Reconstruction and Development (EBRD) has announced a significant equity investment of €50 million in Podravka Agri, a newly established subsidiary of Croatia’s Podravka Group. This investment is part of a strategic initiative to enhance the competitiveness of Croatia’s agricultural sector and modernize its practices.
Purpose of the Investment
The EBRD’s funding will facilitate Podravka Agri’s acquisition of Fortenova Group’s agricultural division, which comprises:
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Belje plus
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PIK-Vinkovci plus
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Vupik plus
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Energija Gradec
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Belje Agro-Vet plus
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Felix plus
These companies will remain independent entities under the management of Podravka Agri, which will oversee their operations and modernization efforts.
Restructuring and Value Creation
The EBRD investment will focus on restructuring Fortenova Group’s agricultural assets and driving value creation through:
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Sustainable Farming Practices: Encouraging eco-friendly agricultural methods to enhance productivity and sustainability.
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Corporate Governance Improvements: Strengthening strategic decision-making capabilities to ensure long-term success.
Charlotte Ruhe, EBRD Managing Director for Central and South Eastern Europe, remarked: “We are proud to support one of the largest acquisitions in the region in recent years. Partnering with Podravka, a longstanding client, provides an excellent opportunity to apply the EBRD’s extensive experience in food and agribusiness across south-eastern Europe.”
Strategic Importance
Martina Dalić, President of the Management Board of Podravka, emphasized the importance of the partnership: “This agreement marks a crucial milestone in finalizing the acquisition of Fortenova Group’s agricultural segment. Our collaboration with the EBRD will enable us to adopt global best practices in agricultural management, enhance corporate governance, and position the acquired companies as leaders in Croatian agriculture. Employees will remain central to our plans as they form the foundation of our successes.”
Podravka Group Overview
Podravka Group, a multinational Croatian company, operates in two main segments:
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Nutrition: Featuring a diverse portfolio of over 1,800 products.
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Pharmaceuticals: Delivering high-quality health solutions.
The EBRD has been a longstanding financial partner of Podravka, providing a range of support over the years, including equity investments, energy-efficiency loans, and syndicated loans.
EBRD’s Broader Impact in Croatia
To date, the EBRD has invested over €4.8 billion in 254 projects across Croatia. The Bank focuses on accelerating reforms, leveraging EU accession benefits, and restructuring public-sector enterprises to drive economic growth and transition.
Future Outlook
This investment not only strengthens Podravka Agri’s position in the agricultural sector but also supports Croatia’s broader economic ambitions. By modernizing farming practices and promoting sustainability, the partnership between EBRD and Podravka is poised to deliver long-term benefits for Croatian agriculture and its workforce.
