Slovenia’s Droga Kolinska Sells Non-Core Brands to Local Company Orka

Orka will take possession of the canned vegetables and sauces brands Droga, Tomatina and Argo as of January 1, Droga Kolinska said in a statement to the Ljubljana Stock Exchange (LJSE). Shares in Droga Kolinska are not traded on the LJSE.

The move is in line with Droga Kolinska’s plans to offload non-core assets as it does not have enough cash to develop all of its brands, the company said. It will use the proceeds from the sale of non-core assets for investments in its main brands and to pay off debt.

Droga Kolinska was set up in May 2005 in the merger of Slovenia's top food makers Droga and Kolinska, which joined ranks to stay afloat in the tougher competitive environment of the European Union. Slovenia joined the bloc in 2004.

Orka had group sales of 120 million euro ($172 million) in 2007, the statement said. The Orka group comprises the parent company and five subsidiaries in Slovenia and abroad, it added.

($ = 0.6968 euro)