The Croatian retailer Studenac has signed a contract to acquire the Šentjur-based grocery chain Kea in a bid to enter the Slovenian retail market. The deal still has to be cleared by the Slovenian market regulator.

Kea, which has own stores but also runs a number of Tuš franchises, employs around 250 employees across 31 stores in Celje, Maribor and in the Prekmurje region in the northeast and Primorska in the west.

Last year it generated nearly €50 million in revenue and €1.3 million in net profit.

The company's current owner is Boštjan Kukovičič with a 3% stake, the rest being Kea's own shares.

"Expansion into Slovenia is an important milestone for our company," Studenac CEO Michal Senczuk wrote in a press release. The company hopes to continue the success story of Kea and strengthen its local and regional ties.

Studenac's first expansion outside Croatia

Studenac is known for its small stores in local communities and its slogan Nicknacks and Essentials (I sitno i bitno).

"We believe our model of stores is tailor-made for Slovenian customers who are looking for a quick and easy way to shop close to home," Senczuk said.

Founded in 1991 in Omiš near Split, Studenac was acquired by the Polish private equity fund Enterprise Investors in 2018 and began a major transformation.

It has since tripled the number of its stores in Croatia to 1,300 by opening new stores and taking over small retailers. Studenac has more than 6,000 employees.

If the transaction gets the regulatory approval, it will be the first time Studenac expands outside Croatia.

Potential impact on bigger takeover

In a commentary on 17 July, the newspaper Delo writes that the Polish investor is planning to sell Studenac and has already hired consultants. It says Slovenian investors could well buy it if they could raise enough money.

"Had Slovenia developed pension funds, they could buy Studenac. But it does not have them, because in the past politicians failed to make a decision to develop them," the paper comments.

Slovenia's largest retailer Mercator is part of the Croatian group Fortenova and signed a contract in November 2023 to take over rival Tuš. The deal still needs to get the go-ahead from the European Commission.

Delo writes that Studenac's acquisition of Kea will likely affect Mercator's takeover of Tuš since Kea runs a number of Tuš franchises and the sale of Kea will probably make the regulator's decision on whether the takeover is in line with competition rules much easier.