Case Study

Diona - Island of Rab has been acquired by Konzum d.d.

Dinova-Diona d.o.o. (Diona), based in Croatia, has sold Diona's 13 supermarkets and a wholesale facility located in the Island of Rab to Konzum d.d. for an undisclosed consideration.

Diona - Island of Rab is the business unit of the fast-moving consumer goods (FMCG) retail network under the Diona brand which consists of 13 supermarkets and a wholesale facility located in island of Rab (Northern Adriatic region).

Konzum d.d. is the leading FMCG retail chain in Croatia with more than 700 stores diversified through various formats (convenient stores, supermarkets, hypermarkets) across the whole country. It also holds the leading position in wholesales segment (under the “Velpro” brand). Apart from Croatia, Konzum is strongly positioned in Bosnia & Herzegovina as well as in Serbia (under the “Idea” brand).

Dinova-Diona d.o.o. is a FMCG retail chain with over 200 stores throughout Croatia, primarily in a supermarket format. It is ranked within the top 10 retail chains in Croatia.

Dinova-Diona d.o.o. is one of the oldest Croatian FMCG retailers, established more than 60 years ago. Diona is owned by one of the largest meat processing companies in Croatia. The owners decided to exit the retail business and refocus on its core business.

The whole project lasted for more than a year and was successfully completed in a series of 5 separate transactions. Oaklins' team in Croatia acted as exclusive advisor to the seller in all five transactions. Our team was invited to develop several exit options and to present the best one which would satisfy most of the pre-agreed seller's goals. Following the team's analysis, Diona's retail business was divided into several business units, based on a combination of geographical and store format criteria. Some of the BU were tailor-made to best suit acquisition criteria. The business units were then directly offered to several strategic partners. The deal was structured in a way that the buyers were offered to acquire the business, in-store equipment and inventories, take over the employees, while the seller retained ownership over all the stores, which were rented to the buyers.

Tombstone image for Diona - Island of Rab has been acquired by Konzum d.d.

KEY DEAL CONTACTS

Željko Perić

Croatia

Principal

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Joško Vučetić

Croatia

Partner

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