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Prosperus Growth Acquires the Medora Hotel Group from Podgora

The Medora hotel and resort group, based in Podgora and with accommodation capacities exceeding 500 units, becomes part of the portfolio of the regional fund Prosperus Growth. Specifically, shareholders, including Euroherc Osiguranje, Adriatic Osiguranje, Agram Life Osiguranje, and Agram Invest, have accepted the binding offer from Prosperus Growth Sedam to acquire 6.78 million shares of Medora, representing 85.88 percent of the total issued capital.

The share of Medora today jumped by nearly 67 percent on the Zagreb Stock Exchange, reaching five euros.

The change in ownership structure does not surprise market observers. The private equity fund Prosperus Growth, managed by Prosperus Invest, has been actively present in Croatian mid-sized companies for some time, with a clear focus on industries that have growth and consolidation potential. The fund’s strategy is directed towards companies that are beyond the start-up phase, with a proven product and stable operations, but with clear potential for strong growth. The targeted investment size ranged between five and ten million euros per company, with an emphasis on the IT, manufacturing, food industry, energy, and services sectors.

The fund began its operations at the end of 2020 with approximately 60 million euros raised. So far, it has executed several significant transactions: it has acquired majority stakes in the IT company Neos, the scientific book publisher IntechOpen, the premium burger chain Yellow Submarine, the mobile home manufacturer Nord Mobil, the aROMA gelato brand, and the energy company STI d.o.o. Investments range between five and ten million euros per project, with a common goal of accelerating the growth of companies with strong development and export potential.

The investment in Medora marks a clear shift for the fund into the tourism and hospitality segment. Acquiring a majority position in Medora opens up opportunities for further development and consolidation.

On the other hand, for Medora, the change in ownership comes at a time when the company has strong financial indicators: in the first nine months, it achieved revenues of 12.28 million euros with a net profit of 3.68 million euros. Considering the level of revenue and profitability, the new strategic investor gains a stable foundation for further steps.

Agram Invest became the majority owner of Medora hotels in 2016 when it purchased the stake of its business partner, Novodom Luka Kaić, which had acquired the majority package during the pre-bankruptcy settlement process of Hotels Podgora. With this purchase, Agram Invest increased its stake to 78.9 percent and announced a public offer to acquire the remaining shares. Grgić’s entry into Medora hotels began back in late 2015 when he, along with Kaić and Auctor Invest, agreed on investments to renovate the hotel complex.

We contacted Prosperus Growth regarding the new acquisition, but they decided not to comment on it yet.

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