How did BOSQAR INVEST and Zagrebačka banka successfully execute a major investment in Slovenia's leading food company? And why is this holistic approach to investment a key driver of economic growth in the region?
The average value of mergers and acquisitions (M&A) in Central and Eastern Europe dropped to €20.1 million in 2024 from €31.4 million in 2023, according to the CMS Emerging Europe M&A 2024/2025 report.
Although the number of transactions increased by 8% compared to the previous year, their values declined due to the absence of large-scale deals, with mid-sized and small projects dominating the market.
However, after what has been a somewhat challenging period for European M&A activity, the report predicts not only a full recovery in 2025 but also growth in the most promising sectors: energy, utilities, real estate, IT, and the agri-food industry.
Among the most significant agri-food acquisitions in Croatia over the past two years was Podravka’s takeover of Fortenova Group’s agricultural segment, including companies such as Belje Vupik, PIK Vinkovci, Energija Gradec, Belje Agro-Vet, and Felix.
Around the same time, BOSQAR INVEST completed a €50 million investment in Slovenia’s Panvita Group, one of the largest vertically integrated agri-food players in the Slovenian market. With this move, BOSQAR launched its fourth business vertical, Food, alongside its existing BPTO, HR, and eCommerce divisions.
Growing Investor Interest in the Agri-Food Sector
One of the main reasons the agri-food sector is attracting investor interest is its high level of fragmentation in Central and Eastern Europe.
Smaller companies, which dominate the market, face numerous challenges, including raw material price volatility, climate change, and rapid shifts in consumer preferences.
Many of these businesses lack clear growth and expansion strategies. Moreover, the sector requires substantial investment in modern technologies, particularly for green transition and digitalization.
Larger players, on the other hand, see acquisitions as an opportunity to enhance competitiveness, optimize resource management, and diversify operations – reducing risks associated with reliance on a single sector.
However, the complex nature of acquisition processes in the region means that such transactions often remain out of the public eye, even when they result in successful investments. BOSQAR INVEST, which has completed 72 acquisitions by 2025, is an exception – willing to share at least part of the formula behind its success.
Establishing a Framework for Complex Investments
“Strategic partnerships are a prerequisite for successful acquisitions,” says Darko Horvat, President of the Management Board of BOSQAR d.d., the holding company of the BOSQAR INVEST group, emphasizing the importance of long-term investors who have supported every one of BOSQAR’s capital markets issue thus far.
The group’s recent investment in Mlinar Group - currently undergoing standard regulatory approval by competent market competition authorities - and its completed acquisition of Panvita are prime examples of the powerful transactions that emerge from such partnerships.
Horvat sees Panvita as one of the cornerstones for the group’s future growth and highlights Zagrebačka banka and UniCredit as key advisors in that process, as their expertise in assessing Panvita’s value and structuring the financial framework of the investment played a crucial role in its success.
“Since they worked on all three aspects of the transaction – the secondary public offering (SPO) that raised €49.1 million for the Panvita investment, structuring the financial framework, and advisory services – Zagrebačka banka and UniCredit had an exceptional understanding of the company’s value and the best way to execute the investment.
“The key factor is ensuring the bank is comfortable with both the valuation and the expected results of the investment, enabling them to conduct all necessary assessments within the project. Ultimately, the most valuable advisory input was in setting the overall framework of the process – from setting up the necessary structures in the target company to defining the structures required in the new entity,” Horvat explains.
He emphasized that Zagrebačka banka and UniCredit, as sector experts, have extensive knowledge of material transactions in this part of Europe, making them the natural partners for such projects.
The success of this strategic partnership is echoed by Zagrebačka banka.
Gordana Maračić, Director of Corporate Clients, acknowledges that M&A transactions are complex and require significant commitment from all parties involved.
However, she notes that BOSQAR’s Panvita investment was executed smoothly and within the shortest possible timeframe – thanks to the trust established among the parties.
The Key to Success
What does it take to make a strategic partnership truly work?
According to Silvio Palić, Director of Advisory and Financing at Zagrebačka banka, the key lies in a deep mutual understanding that allows both sides to align their needs and preferences, coupled with close collaboration at the leadership level.
“Additionally, well-established internal processes enable swift and efficient responses -both from the bank to the client’s evolving needs and from the client to new market opportunities,” adds Palić.
“With a comprehensive range of services – from advisory to financing – tailored to the specific requirements of each client, Zagrebačka banka has established itself as a reliable 'one-stop-shop' partner, providing unique added value in the market,” he explains.
BOSQAR INVEST recognized these advantages early on.
“A bank that offers a full-service package, is large enough to operate on three fronts, and can handle significant volumes – particularly as transactions become more complex and potentially larger – is the right partner for projects like these. Zagrebačka banka and UniCredit were fully informed about the due diligence process, Panvita’s business performance, and our projected future results. Their deep involvement helped them set a realistic financial framework, incorporating both equity and financing options,” says BOSQAR’s Darko Horvat.
The Importance of Agility in Preparing Large Transactions
When it comes to financing acquisitions, every transaction is unique – no two projects are exactly the same. Information often changes throughout the process, requiring flexibility in structuring transactions and financing models, explains Gordana Maračić.
“In our collaboration with BOSQAR, we maintain exceptionally open and professional communication, which is always crucial for project success. Through dialogue and exchange of perspectives, we continuously align our positions and plan activities. In this case, that dynamic saved us time and contributed to a successful transaction,” says Maračić.
She adds that the bank is proud of its team of top-tier professionals, capable of managing even the most complex financial transactions and executing a comprehensive, holistic concept like the one between BOSQAR, Zagrebačka banka, and UniCredit.
This approach to strategic partnerships generates a synergy effect that not only drives growth for all parties involved but also serves as a catalyst for broader regional economic development. The positive impact extends to the community through innovation, job creation, and infrastructure improvements in the agri-food sector.