Case Study

Istracommerce d.o.o. has been acquired by Istarski Supermarketi d.o.o.

Dinova–Diona d.o.o. (Diona), based in Croatia, has sold Istracommerce d.o.o. to Istarski Supermarketi d.o.o. for an undisclosed consideration.

Istracommerce d.o.o. is a retail company owned by Diona which consists of 47 supermarkets and one wholesale store located in the region of Istria.

Istarski Supermarketi d.o.o. is a FMCG retail chain operating in a supermarket format under the “IS” brand in the region of Istria.

Dinova–Diona d.o.o. is one of the oldest Croatian fast-moving consumer goods (FMCG) retailers, established more than 60 years ago. The owners decided to exit the retail business and refocus on its core business. During 2013–2015, the group has completed the divestment process of its retail network and now it operates only in the town of Zagreb with approximately 50 stores.

The whole project lasted almost two years and was successfully completed in a series of six separate transactions. Oaklins' team in Croatia acted as exclusive advisor to the seller in all six transactions. Our team was invited to develop several exit options and to propose the best one that 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 business units were tailor-made to best suit the acquisition criteria. The business units were then directly offered to several strategic partners. The deal was structured in such a way that the buyers were offered to acquire the business, in-store equipment and inventories, and take over the employees, while the seller retained ownership over all the stores, which were rented to the buyers.

Tombstone image for Istracommerce d.o.o. has been acquired by Istarski Supermarketi d.o.o.

KEY DEAL CONTACTS

Željko Perić

Croatia

Principal

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Joško Vučetić

Croatia

Partner

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