FDBusiness.com

The European Bank for Reconstruction and Development (EBRD) is supporting regional corporate consolidation in south-eastern Europe and the development of strong local food and beverages brands with a Eur57.5m financing package for Atlantic Grupa, Croatia’s biggest food and healthcare company, to fund its expansion through the acquisition of Droga Kolinska, the largest branded food company in Slovenia. The Eru382m deal creates one of the largest branded food companies in the region.

In addition to its leading position in Croatia, Atlantic Grupa also has a strong presence in neighbouring countries after expanding through a successful series of acquisitions in south-eastern Europe, Germany and the UK. The company’s production is focused on sports food, personal care products, vitamin drinks and food supplements, while its distribution activities cover a wide range of leading international consumer brands.

Droga Kolinska has subsidiaries in seven countries and 14 production facilities throughout south-eastern Europe.

The EBRD is taking an 8.5% shareholding in Atlantic Grupa for Eur27.5m, making it the second largest shareholder after its founder Emil Tedeschi with 50.2%. The bank’s equity investment is a part of the financing package of Eur57.5m to Atlantic Grupa, which also includes a Eur30 million loan.

“The acquisition provides the opportunity to create an integrated company that should be a regional champion and competitive internationally based upon a diversified and branded product portfolio and good distribution platform,” says Lindsay Forbes, corporate equity director of EBRD. “The management of Atlantic Grupa has demonstrated its drive and capacity to integrate previous acquisitions in a manner which is beneficial to all parties.”