Fortenova could soon be leaving the Slovenian company Mercator Emba

Fortenova has confirmed to us the unofficial information published by the Ljubljana Dnevnik that it is considering the sale of the food processing company Mercator Emba, which is wholly owned by Mercator. To begin with, a market interest assessment process has started, and the advisor in this process is UniCredit Group. However, Fortenova notes that a final decision on the sale has not yet been made.

– In the potential partner selection process for taking over the company, as in all previous similar transactions, we will focus on those who, in addition to paying a fair price, will provide maximum contribution to the further development of the business and the preservation of employment in the company – Fortenova stated.

Mercator Emba, which is primarily a large B2B manufacturer of toppings and syrups, currently operates within the Food sector of the Fortenova Group. The company, in addition to Konzum and Mercator, has been a long-term partner of the largest chains in many EU countries, generating 90 percent of its revenue in foreign markets. In 2023, the Slovenian manufacturer generated a total of 24 million euros and achieved a profit.

– However, the portfolio of Mercator Emba does not fit into the activities of the companies in the Fortenova Group, where their products and services are mainly aimed at end consumers, while the portfolio of Mercator Emba is primarily aimed at B2B customers, thus these two fundamental differences significantly reduce the synergy potential that the Group companies have with each other and on which its development strategy is based – it was explained to us from Fortenova.

We did not receive a direct answer to the question of whether the sale of Mercator Emba is related to the contractual obligations that Fortenova has towards its main creditor, the American fund HPS. Currently, the question of all questions is reducing the debt-to-operating profit ratio by the end of this month to avoid a forced sale of the retail or beverage division.