Atlantic Grupa Equity

Location:

Croatia

Project number:

41762

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

06 Jul 2010

Status:

Complete

PSD disclosed:

01 Jul 2010

Translated version of this PSD: Croatian
 

Project Description

The EBRD is considering providing financing of up to EUR 70 million to Atlantic Grupa d.d. (‘AG’), a leading Croatian company engaged in production, development and distribution of fast moving consumer goods, which will be used for further regional expansion through acquisition of Droga Kolinska d.d. (‘DK’), a Slovenian based food and beverage producer, with aim of further integrating and improving operations.

Transition Impact

The proposed transaction will demonstrate the successful restructuring and integration of two compatible regional companies in South-eastern Europe. Improvements will be realised by exploiting significant cost synergies in the operations of the two businesses, through the rationalisation in production, purchasing and distribution activities.

In addition to this, the project will bring improvements in corporate governance and business standards. This will be achieved by implementing a Management Information System across the new group subsidiaries in the region, which will enable regular reporting to internal and external stakeholders, as well as better budgeting and other decisions. Moreover, the project will explore potential improvements in the energy efficiency of production facilities.

The Project is expected to serve as an example for other companies in the region which are considering expansion in their neighbouring markets.

The Client

Atlantic Grupa d.d. is a leading Croatian company engaged in the production, development and distribution of fast-moving consumer goods in Croatia and the Western Balkans region.

EBRD Finance

EUR 70 million, including:

i. An equity investment of up to EUR 30 million into ordinary shares of Atlantic Grupa through capital increase, and

ii. Subordinated debt facility of up to EUR 40 million to Atlantic Investment d.o.o., a fully owned subsidiary of Atlantic Grupa

Environmental Impact

Environmental and social due diligence to date has focused on AG given that access to DK is limited until the acquisition is complete. Detailed information has been provided by AG on its environmental and social policies and practices. While AG does not have a written environmental policy at the group level, individual facilities (e.g. Cedevita, Neva) do have written policy statements. AG has staff dedicated to environmental and social issues at both the central and individual facility level. All production facilities are certified according to a range of management systems and certificates including ISO 9001, ISO 14001, HACCP. AG has an HR function which operates both at a central and facility level. There are written policies and procedures covering a range or areas including terms and conditions, performance management and career development, education, and compensation and benefits. AG is compliant with national HR management requirements and is regularly inspected by the authorities. AG is aware of the various impacts associated with its production and distribution facilities and has systems and practices in place to deal with these. Given the nature of the company's products and production techniques, impacts on local communities are limited and are dealt with on a facility by facility basis. There are a number of communication channels used by AG for both internal communication with workers and external communications with customers and local communities.

No ESAP is required for this operation at this stage. Post-acquisition a third party auditing programme will be undertaken of all DK facilities. Once detailed due diligence on DK facilities has been completed then an ESAP will be developed as required to ensure compliance with AG corporate requirements and EBRD's Performance Requirements. Monitoring of this project will be via annual environmental reports submitted by the Company and by site visits, as and when required by the Bank.

Technical Cooperation

None.

Company Contact

Neven Vrankovic, Group Vice President, Corporate Affairs

Atlantic Grupa

Tel: +385 1 2413 900
Email: neven.vrankovic@atlantic.hr
Website: www.atlantic.hr

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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