Croatia's Fortenova in talks with Nomad Foods on frozen food business

ZAGREB (Reuters) - Croatian food producer and retailer Fortenova Grupa has decided to start exclusive talks with Nomad Foods on the sale of its frozen food business, it said in a statement on Monday.

“Due diligence process for the frozen food business, in which there were several parties involved, has ended by our acceptance to continue negotiations exclusively with Nomad Foods. I expect the signing of a sale agreement at the end of the first quarter,” said Fortenova’s CEO Fabris Perusko.

He said the whole transaction could then be completed during the summer.

Fortenova’s frozen food business includes Ledo Plus from Croatia, Ledo Citluk from Bosnia and Frikom from Serbia.

Fortenova, formerly known as Agrokor, was saved from bankruptcy in a restructuring deal with local and foreign creditors in mid-2018 which included a change of the name and the ownership structure.

Reporting by Igor Ilic; editing by David Evans