Global law firm White & Case LLP has advised Istrabenz d.d., a financial holding company based in Slovenia, on its €382 million sale of Ljubljana based Droga Kolinska d.d., a Southeastern European food and beverage company, to Atlantic Grupa, a Croatian food and healthcare company.
“This is one of the largest, if not the largest, deal in Slovenia this year,” said Damian Beaven, White & Case Prague partner who led the negotiation teams. “The great interest the deal has generated and the price achieved in the Droga Kolinska sale show how attractive companies in the former Yugoslavia are to strategic investors as well as private equity players.”
Istrabenz d.d. has been under compulsory settlement proceedings in its capacity as debtor since March 2010. The sale of Droga Kolinska d.d. is part of the debt restructuring program adopted by Istrabenz, with the intention of clearing approximately €500 million in debts.
“This deal is a real success for Istrabenz, as it helps Istrabenz substantially leverage its financial exposure to the banks in its current state of financial reorganization,” commented Michal Smrek, White & Case Prague partner who, along with Damian Beaven and Rob Irving, White & Case Budapest partner and head of the Private Equity Practice in Central and Eastern Europe, advised Istrabenz. “This is not the first M&A deal which we have advised on in Slovenia, but it certainly qualifies as a landmark deal for us this year,” added Michal.
Istrabenz Group d.d. is listed on the Ljubljana Stock Exchange, and the purchaser, Atlantic Grupa, has been a public company since 2007. Atlantic Grupa was the winning bidder in a competitive sales process, which attracted a wide range of investors. The deal was signed on 30 June 2010 and closed on 23 November this year. Altantica Grupa is a strategic buyer for Droga Kolinska d.d. The combined holding will have sales of €650 million and a workforce of 4,300 people, making it one of the biggest food companies in Southeastern Europe.
The core team, comprised of partners Damian Beaven, Rob Irving and Michal Smrek, and associates Daša Vukelic and Jakub Rod, were assisted by White & Case partner Edward Keller and associates Chris Budway, Anthony O’Connor and Chris Tierno in Budapest; associates Dmitry Donov, Vladislav Ivanov, Ekaterina Kamkina, Elena Kilimnik and Ksenia Pozdnyakova in Moscow; partner Jonathan Weinberg and associate Martina Koucká in Prague; and London associate Edward Attenborough. Slovenian law firm Jadek & Pensa acted as co-counsel. Marsh acted as brokers for the warranty and indemnity insurance that was put in place.
