A consolidation of such scale has not occurred in Croatian retail for a long time, as is currently being carried out by the Polish private equity fund Enterprise Investors, which began in 2018 with the acquisition of the Omis-based Studenac.
Most of the actual targets for consolidators are family-owned companies that have reached their limit of expansion potential, mainly in a limited regional area. They typically generate between 300 and 700 million kuna in annual revenue and have small-format stores that are often individually unprofitable. However, they are interesting to acquirers primarily due to the market shares they hold in their territory. All these companies have already received offers for sale, but it seems that those offers were not as high as their founders believe they should be.
BOSO The Vinkovci-based company, with a revenue of 708 million kuna in 2020, is the leader among potential targets. Its chain predominantly features the smallest store formats, which are the most labor-intensive and logistically demanding to service. The founder is Bosiljko Stanić, who is also a co-owner and has already transferred part of his ownership stakes in the company, as well as roles in the business, to his four children.
GAVRANOVIĆ Among those familiar with the domestic retail scene, it is believed that Milka Gavranović, the majority owner of Gavranović, will eventually sell her company and will certainly achieve the best price compared to other targets. About ten years ago, the company acquired part of the sales outlets of Diona and thus positioned itself quite well in Zagreb. It is also represented in other cities, from Crikvenica to Popovača, with a total of approximately 170 stores, including small towns in Lika and Gorski Kotar where other retailers do not even consider entering. Gavranović has an annual revenue of nearly half a billion kuna.
