BOSQAR INVEST and Partners Strengthen Food Vertical with an Investment in Mlinar Group Valued at EUR 100 Million in Aggregate

With its partners, BOSQAR INVEST is carrying out a transaction valued at 100 million euros in aggregate for a 67% indirect stake in the Mlinar Group. BOSQAR will acquire an immediate 50.1% stake
MidEuropa will reinvest its remaining stake and continue supporting the newly formed group in its expansion
This investment expands BOSQAR’s Future Food vertical, established earlier this year through the investment in Panvita Group

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Zagreb, Croatia, December 19th, 2024 – BOSQAR INVEST (BOSQAR d.d. – ZSE: BSQR) is expanding its Future Food vertical through a strategic investment in Mlinar Group, a leading bakery group in the Adria region.

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The investment will be carried out in partnership with existing shareholders in Panvita, led by Peter Polanič, and the management team of Mlinar, headed up by Mladen Veber.

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This partnership includes an investment of EUR 100 million in aggregate, securing a 67% indirect stake in Mlinar Group. As part of the transaction, BOSQAR will acquire an immediate 50.1% stake.

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The newly expanded group will be strategically supported by MidEuropa, a European private equity investor with deep roots in Central Europe, with which BOSQAR has a longstanding partnership, reinforcing MidEuropa’s commitment to further establishing Mlinar as an industry leader in Southeast Europe (SEE).

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The investment builds on BOSQAR’s commitment to the development of its new Future Food vertical, established through the investment in the Slovenian Panvita Group, and is expected to unlock synergies and strengthen the platform, providing enhanced growth opportunities across the vertical.

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Panvita, in particular, will be well-positioned to make use of the expansion to BOSQAR’s Future Food vertical as it moves to materialize its regional ambitions.

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"The inclusion of Mlinar in BOSQAR INVEST’s Future Food vertical creates exciting opportunities for growth expanding on the existing Panvita investment. By leveraging the strengths of both Mlinar and Panvita, we are poised to unlock growth opportunities and new market opportunities across the region. In partnership with Panvita’s existing shareholders and Mlinar’s management, with the further expanded platform joined by MidEuropa as trusted partners with which BOSQAR has already collaborated on developing two other extremely successful business verticals, we're convinced that we’ve put together a winning team that will be able to establish BOSQAR's Future Food vertical as a dominant regional food solutions player," said Darko Horvat, President of the Management Board at BOSQAR d.d., and Peter Polanič, Co-Chairman of Future Food.

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MidEuropa and BOSQAR INVEST entered into a partnership in 2019, with a joint investment in Mplus, BOSQAR’s BPTO segment. Since then, Mplus has grown to become a regional leader in CX solutions, boasting over EUR 220 million in revenue and 11,600 employees. MidEuropa also supported the expansion of BOSQAR's second vertical, Workplace Group, into a leading provider of People and Culture services in SEE, with EUR 100 million in revenue and a workforce of 2,200 employees.

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Now, building on this impressive track record, BOSQAR and MidEuropa are expanding their collaboration to the food industry.

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"This partnership marks a significant step forward for Mlinar Group, as it combines MidEuropa's deep-rooted industry expertise in the region and BOSQAR's strategic vision and resources. We have already invested alongside BOSQAR in two of their other successful business verticals, so we also enjoy a shared understanding, trust, and experience that has developed over the years. Together, we will work to position Mlinar and expand its influence in the region and across international markets, reinforcing its status as a leader in the industry," said Robert Knorr, Managing Partner at MidEuropa.

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“Mlinar is a leader in the bakery industry thanks to its focus on quality, innovation, and development of new products. We’re extremely pleased with what we have achieved with MidEuropa’s backing and would like to thank them for their continued support. Empowered by this investment from BOSQAR INVEST and its partners, Mlinar will be in an ideal position to realize its ambitions when it comes to regional and international markets, expanding its footprint and its services to become a leading regional fresh food producer, distributor, and convenience retail chain,” said Mladen Veber, President of the Management Board of Mlinar Group.

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The Mlinar Group reported revenues of EUR 163 million and 2500 employees in 2023. This investment will enable it to further expand its export footprint and grow its regional presence.

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Subject to the prior regulatory approval by the competent authorities, after finalizing the investment in the Mlinar Group, BOSQAR INVEST will have a workforce of over 16,000 employees and realize around EUR 700 million in annual revenue in pro forma consolidated terms in 2025.

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About BOSQAR INVEST:

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BOSQAR INVEST (BOSQAR d.d., together with its subsidiaries) is a European leader that operates in the industries of business process and technology outsourcing, information technology, employment services (HR), eCommerce, and Food.

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With an innovative business model, BOSQAR INVEST accelerated its expansion on the market with intensive organic growth and an M&A platform. Through its buy-and-build strategy, it has acquired 57 companies since 2016. BOSQAR INVEST is focused on improving the profitability and operations of each of its acquired companies through its standardized operational models that result in significant organic growth of all companies inside the Group and the Group itself.

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Today, BOSQAR INVEST operates through four business verticals: the BPTO business vertical (brand: Mplus), the HR business vertical (brands: Manpower and Workplace), the eCommerce business vertical (brand: Eplus Ventures), and the Food business vertical (brand: Future Food Solutions). All business verticals are focused on shareholder value creation through a commitment to best practices in digitalization, structured key accounts management programs, rigorous financial stability and cash management, strong and dedicated management teams, and a focus on results.

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In its ownership structure, BOSQAR INVEST brings together pension funds, institutional investors, international private equity funds, development institutions, and private investors. The BOSQAR INVEST business community consists of over 13,900 employees, and the group provides its services to clients who, in addition to Croatia, do business in 57 countries around the world.

About Mlinar Group:

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The Mlinar Group stands as the largest bakery group in the Adria region, serving a market of 16 million people. The Group operates over 300 sales points across Croatia, Slovenia, and Serbia, leveraging the combined strengths of Mlinar Croatia, Mlinar Slovenia, and Hleb i Kifle, which caters to the Serbian market.

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Under MidEuropa’s ownership, Mlinar was transformed from a founder-led organisation to a modern consumer-focused company. MidEuropa introduced a professional management team, led by Mladen Veber, a seasoned CEO with decades of experience in the FMCG industry, and supported by other industry veterans. During MidEuropa’s holding period, Mlinar nearly doubled its revenues by growing its store network from 218 in 2019 to over 300 in 2024, refurbishing existing ones, and focusing on operating efficiency improvements and increased exports. Mlinar also expanded its presence in Croatia, Slovenia, and Bosnia and Herzegovina through franchise partnerships, and entered the Serbian market with the acquisition of local bakery chain Hleb & Kifle in 2020.

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With five production facilities and a dedicated workforce of more than 2,500 employees, Mlinar Group generated total revenue exceeding 163 million euros in the same year, driven by its expansive retail network, wholesale operations, and exports to more than 20 international markets, including Romania, the Netherlands, Sweden, Switzerland, and South Korea, making international sales a vital component of its business strategy.

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Some 96% of its raw materials and services were sourced from domestic suppliers, underscoring Mlinar’s commitment to supporting local economies.

About MidEuropa:

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MidEuropa is a leading European private equity investor with deep roots in Central Europe and a track record spanning 25 years.

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Headquartered in London, with a presence in Warsaw, Bucharest, Prague, and Zagreb, MidEuropa identifies winning investments across the healthcare, technology, services, and consumer sectors and supports them in their growth and international expansion.

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To date, MidEuropa has raised and managed funds of circa EUR 6.5 billion and completed 46 investments and over 270 add-on acquisitions across 20 countries.