Fortenova Group announced on Thursday it has completed the sale of the Frozen Food Business Group to Nomad Foods after receiving all regulatory approvals. The value of the transaction was €615 million.

The Frozen Food Business Group comprises Ledo plus d.o.o. in Croatia, Ledo Citluk in Bosnia and Herzegovina, and Frikom d.o.o. in Serbia, as well as several related companies in other South East Europe markets. It has a market leading portfolio of frozen food and ice cream brands enjoying a strong recognition among consumers in Croatia, Serbia and Bosnia and Herzegovina.

“This major transaction has been closed one year after the Frozen Food Business Group divestment process was initiated in Fortenova Group, despite the project having been carried out under very challenging circumstances of the pandemic,” said Fabris Perusko, CEO and member of the Board of Directors of Fortenova Group.

He expressed an expectation that “Nomad Foods will be an important business partner for Fortenova’s regional retail business going forward. For Fortenova 2021 is becoming a transformational year. We have not only completed the refinance and transfer of Mercator, where we are delivering on planned synergies, we have also delivered on a successful summer season and now we have completed the planned sale of the Frozen Food Business Group, all of which are now resulting in Fortenova having a substantially stronger capital structure,” Perusko said.

“In 2021, besides the refinance and transfer of Mercator, the delivery on all our plans in the summer season, where all our businesses and Divisions have delivered excellent operational results both in profit and cash, and the sale of the Frozen Food Business Group, Fortenova has also completed its program of non-core divestments and achieved numerous operational improvements to our businesses, all of which are contributing to the improvement of our financial metrics,” said James Pearson, CFO of Fortenova Group.

“In respect of this transaction, we will use the funds from the sale of the Frozen Foods Business Group to immediately repay debt and as a result we will be significantly deleveraging the company. With clear and continued delivery on our plans in 2021, Fortenova can now look forward with real confidence to the future as this Frozen Food transaction step changes our financial position and capital structure and will allow us to invest and grow our very strong businesses in the coming years,” Pearson said.