Slovenian Iskra Acquires Split’s ELMAP

The Slovenian company ‘Iskra’ electro and system solutions signed a contract to purchase a majority stake in the company ELMAP from Split, the company announced on Friday without disclosing the transaction value. ELMAP is one of the leading companies in the region in the field of automation of wastewater and drinking water treatment devices, water supply systems, electrical engineering, and infrastructure systems.

The contract was signed in Split by the CEO and majority owner of Iskra Dušan Šešok and the owners of Split’s ELMAP, Ljubomir and Jasminka Božiković.

Šešok emphasized that despite difficulties in the global market and signs of recession in Europe, the Iskra Group continues to operate exceptionally successfully and finished 2023 with nearly 300 million euros in consolidated revenue.

This result, he said, is partly due to European customers turning to European manufacturers regarding components, as well as systemic solutions for energy, ecology, telecommunications, railways, and industrial automation.

– The acquisition of ELMAP is part of our strategy of expansion through acquisitions of companies with market potential, which in synergy with Iskra can multiply added value. In this sense, Croatia is very interesting to us due to its proximity, market knowledge, and good experiences with the shipyard in Šibenik and the company Elka in Zagreb – emphasized Šešok.

The key sectors of operation of the company ELMAP, which will now operate within the Iskra Group, are the electrical engineering part and automation of wastewater and drinking water treatment devices, water supply and drainage, electrical engineering, and automation and remote monitoring and management systems. Furthermore, based on previous very positive experiences and acquired references, it will continue to develop as a leader in the equipping and modernization of signaling, lighting, and monitoring and management systems in airports and other infrastructure facilities.

– Despite difficulties in the global market and signs of recession in Europe, the Iskra Group continues to operate exceptionally successfully. Thus, 2023 ended with nearly 300 million euros in consolidated revenue. This result is partly due to European customers turning to European manufacturers regarding components, as well as systemic solutions for energy, ecology, telecommunications, railways, and industrial automation. The acquisition of ELMAP is part of our strategy of expansion through acquisitions of companies with market potential, which in synergy with Iskra can multiply added value. In this sense, Croatia is very interesting to us due to its proximity, market knowledge, and good experiences with the shipyard in Šibenik and the company ELKA in Zagreb – says Šešok.

He also noted that Iskra continuously invests in research and development of new products to implement new technologies and innovative solutions. As the new owner, this will be applied in the further development of ELMAP, which they have acquired.

Božiković stated that he is pleased that ELMAP will become a member of such a successful and entrepreneurial business group as Iskra and that the team, which has more than 30 employees, will have the opportunity to further develop.

The acquisition of ELMAP, as stated in the announcement, is the third transaction of the Iskra Group in Croatia – after the purchase of the Šibenik Shipyard in 2019, which has been operating under the new brand Iskra Shipyard, and the Zagreb company Elka in 2021.

The integration of ELMAP into the Iskra Group, as well as Iskra’s previous acquisitions in Croatia, should also be viewed through the mutually beneficial cooperation between the Republic of Croatia and the Republic of Slovenia. It is in the broader interest of the Republic of Croatia to strengthen its economy’s ties with Slovenia’s economy, as it will be able to operate and do business more successfully in international markets and effectively respond to the challenges of global competition.

– When we buy a company, I know exactly where I can see bottlenecks – emphasized Šešok for Lider two years ago, adding that they never buy companies that have very good results, but those that have growth potential, and so it is this time with ELMAP.

Let us recall that when Šešok acquired Elka in 2021, he said that it was the result of European customers turning to European manufacturers.

– We are convinced that the trend of bringing production back from Asia to Europe will continue, so the acquisition of ELKA is part of our strategy of expansion through acquisitions of manufacturing companies with market potential. In this sense, Croatia is very interesting to us due to its proximity, market knowledge, and good experiences in Šibenik, as well as the recently improved political relations between the two countries. Iskra continuously invests in research and development of new products to implement new technologies and innovative solutions, which we will certainly apply in the further development of the company ELKA that we are acquiring. The entry of ELKA into the Iskra Group is excellent news for the Slovenian and Croatian economies as recognizable brands and two companies with a long tradition, each in its segment, symbolizing reliability and quality, synergistically connect – said Dušan Šešok, director and majority owner of ‘Iskra’, which is also the largest family group in Slovenia.

Regarding Šibenik and Iskra Shipyard, Šešok also said at Lider’s conference that the beginning of the war in Ukraine distanced them from a new project – specifically, a new floating dock, but that other investments in modernization and capacity increase continued smoothly.