Atlantic Group will retain the brands of Droga Kolinska

Emil Tedeschi, President of Atlantic Group, confirmed on Thursday at a press conference in Portorož that a contract was signed on Wednesday evening under which Atlantic Group is purchasing the largest Slovenian food company, Droga Kolinska, from Istrabenz Holding, emphasizing that the purchase was conducted transparently and that the new owner will not close any Droga Kolinska factories in Slovenia, but rather invest in them.

According to Tedeschi, Atlantic Group will pay Istrabenz Holding 382 million euros in cash, reduced by the net debt of the Slovenian company, which is currently estimated at around 140 million euros, and the transaction will be completed no later than the beginning of November this year. Tedeschi appeared at the press conference alongside the director of Istrabenz Holding, Tomaž Berločnik, and the CEO of Droga Kolinska, Slobodan Vučičević, highlighting that the contract negotiation process was entirely transparent, pointing to the significant potential for synergistic cooperation between companies whose activities do not overlap.

He stated that he had already met today with representatives of the employee council at Droga Kolinska, assuring them that Droga Kolinska will retain the brands it currently produces even after being taken over by Atlantic Group, that its factories in Slovenia will continue to operate, that the new owner of Droga Kolinska will develop and invest in its core business, and that there will be no relocation of production capacities outside Slovenia.

In response to journalists’ questions about the future development of his group and its shareholding structure, Tedeschi announced an upcoming recapitalization amounting to around 80 million euros, in which, according to him, the German Development Bank (DEB) and the European Bank for Reconstruction and Development (EBRD) will participate, but he clarified that he himself will also participate in the recapitalization and that after the recapitalization, his ownership stake in Atlantic Group will not fall below 50 percent. Regarding the contract concluded with Istrabenz Holding, Tedeschi stated that the doubts about its realization are unfounded, given that first-class guarantees were provided for it, and the funds are secured from equity, banks, and recapitalization resources.

When asked by journalists how he sees the development of Droga Kolinska in the next five years and whether it will be a strong competitor to Podravka, Tedeschi replied that Atlantic Group does not need to prove itself to anyone considering what it has already achieved. According to him, in the next five to seven years, Atlantic Group is expected to exceed a total annual consolidated revenue of one billion euros. He emphasized that with the acquisition of Droga Kolinska, a strong regional and broader company is being formed with four and a half thousand employees and 15 factories in 12 countries, with an annual revenue of 625 million euros.

Tedeschi stressed that the company continues to work on its expansion strategy in the region and beyond, and intends to further invest, especially in Bosnia and Herzegovina, Serbia, and Macedonia. Tomaž Berločnik, the director of Istrabenz Holding, stated that Atlantic Group, to demonstrate the seriousness of the transaction, deposited 20 million euros into a fund in London, which, along with the provided banking guarantees, is proof that the purchase of Droga Kolinska will be realized. Slobodan Vučičević, the director of Droga Kolinska, believes that the brands of that company, which are its most valuable part, have come into the right hands when the decision was made to sell the company to Atlantic Group. He expressed confidence that with Atlantic Group, the development and progress of Droga Kolinska in the region and beyond are secured.  (H)