Poland’s Enterprise Investors (EI) has signed a contract for the takeover of 100% of Croatian grocery retailer Studenac.
The transaction, the value of which was not disclosed, will be conducted through Polish Enterprise Fund VIII, a private equity fund managed by EI.
The deal is conditional to the approval of Croatia’s Agency for the Protection of Market Competition.
Store Network
Studenac is a network of neighborhood grocery stores operating in Croatia’s southern Dalmatia region.
The seller is founder and owner Josip Milavić, who set up the business in the 90s initially as a wholesale operation. Over time, Studenac expanded into the retail segment, which now accounts for up to 95% of total revenue.
At the end of 2017, Studenac operated a total of 384 stores, with an average selling space of 120 square metres.
Most of the stores are located on the coastline and islands, while the rest operate in the hinterland and in big coastal cities such as Dubrovnik and Split. In the last three years, 60 new stores have been added to the network.
Last year, Studenac achieved over €200 million in revenue and the group employs over 2,600 people.
The company is the eight biggest grocery retailer in Croatia and the second biggest in the Dalmatia region, behind Split-based Tommy.
Commenting on the development, Michał Kędzia, a partner in Enterprise Investors, pointed out that food retail market in Croatia has experienced “healthy growth” in recent years, on the back of increasing disposable income and a rapid rise in the number of tourists.
He expects Studenac will benefit from favorable macroeconomics, a strong tourism industry and consumers’ preference for shopping close to work or home.
Expand The Group
EI plans to bring on board industry experts to accelerate the development of the store network, weigh up potential market consolidation and enhance the current stores’ performance.
One of the tasks will also be the expansion in the local market, to reach other areas of Croatia.
This is EI’s second investment in Croatia, after signing a contract in March to acquire a 65% stake in local bakery company and retailer Pan Pek, again for an undisclosed price.
Pan-Pek is one of the biggest producers of frozen bakery products in the Adriatic region, serving modern grocery retailers in Croatia. It also operates around 50 stores, predominantly in the Zagreb area.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
