Business News

Mercator Sells Food Company Eta

Ljubljana, 16 February (STA) - Slovenia's leading retailer Mercator has decided to sell its 100% stake in Kamnik-based food company Eta, reaching agreement on the sale of a 72% stake to Slovenian investment management firm Fineta and a 28% stake to Serbian company Eterra.

Mercator did not disclose how much it raised with the sale of Eta on Wednesday, saying merely that the contracts will enter into force once the conditions set down are met.

The company said in a press release it decided to sell Eta, whose main activity is the production of canned food, in line with its strategy of focusing on its core activity.

It also expressed its expectation that the new owners would continue to invest in development at Eta, enabling it to expand both on the Slovenian market and other markets in the region. Mercator plans to continue cooperating with Eta as a buyer of its products.

According to Mercator, Eta's new owners are happy with the acquisition, viewing Eta as "a food company with a strong brand presence and position on the market". "We also see a lot of untapped potential, which definitely deserves to be invested in," the press release reads.

Eta generated sales revenues of 21m and a profit of EUR 1.36m in 2009, the last full year for which a report is available. The company employs around 200 staff.

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