Norwegian-based Orkla, Nomad Foods and a Czech-Slovak consortium of Emma Capital and J&T Private Equity Group are still in the race for the sale of Fortenova Group’s frozen food units that include Ledo Plus, Ledo Citluk, Frikom and several smaller companies. The interested parties will now begin due diligence, after which they should submit binding bids, according to sources cited by Jutarnji List. The report also shows the transaction could reach up to EUR600m.
“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 record,” Fortenova CFO James Pearson said in a statement.
The business operations of food company Agrokor were transferred to the newly formed Fortenova Group in April 2019 under a settlement agreement with Agrokor’s creditors endorsed by a Croatian justice court in June 2018. Since then, Fortenova has been divesting non-core operations and focusing on core divisions of retail, food and agriculture in order to strengthen the group’s capital position, according to local media outlets. In September, Fortenova Group, which wants to consolidate some of its business by selling the frozen food units, announced it already received some non-binding offers.