Company of Rusmir Hrvić Buys Part of Croatian Podravka's Business

(Patria) - Croatian Podravka and its company Žito d.o.o. Ljubljana have decided to sell the confectionery business unit, which includes the brands Šumi, Gorenjka, Herba, Mistica and Bali, with the aim of focusing Žito d.o.o. Ljubljana on its core activity, i.e., the bakery business.

A purchase agreement was signed today in Ljubljana between Žito d.o.o. Ljubljana and the company UPI Star d.o.o. Sarajevo, which will take over the entire confectionery business - employees, brands, and the factories Šumi in Krško and Gorenjka in Lesce - with the desire to continue developing and strengthening it.

UPI Star d.o.o. Sarajevo will, prior to the closing of the transaction, establish the company UPI Star SEE Ljubljana, which will be the ultimate owner.

The purchase price amounts to 8.6 million euros, plus the inventory and net cash balance at the closing date, which is expected by the end of the year, upon fulfillment of all conditions.

UPI Star d.o.o. Sarajevo is owned by the family of Rusmir Hrvić, an entrepreneur from Bosnia and Herzegovina and co-owner and CEO of one of the leading business groups in BiH, AS Holding.

Rusmir Hrvić gained business experience in building and expanding food brands, particularly in the confectionery and FMCG sector, which will be of key importance in the strategic oversight of the further development of the Šumi and Gorenjka brands, which will continue to be led by a team of Slovenian and international managers with the aim of expanding operations to regional and foreign markets, Croatian media reported.

- This decision is part of the strategic determination to focus Žito d.o.o. Ljubljana on baking as its core activity, but also to preserve and continue developing the confectionery part of the business.

Gorenjka and Šumi are strong Slovenian brands with which generations of Slovenian and regional consumers are connected.

We are satisfied that we have found a partner who will continue to invest in and develop Šumi and Gorenjka, thus preserving valuable brands - stated the President of the Management Board of Podravka, Martina Dalić.

A prerequisite for the realization of the purchase agreement is the spin-off of the confectionery part of Žito's business into a separate company named Šumi Gorenjka d.o.o., so that the buyer can then take over a one hundred percent stake in that new company.

Additionally, Podravka's companies will continue to act as distributors of the confectionery portfolio in the markets where they are already present.