Information on the Target

PAN-PEK is a prominent Croatian bakery manufacturing and distribution company that was established in 1992. Over the years, it has experienced dynamic growth, positioning itself as one of the largest players in the Adriatic region for frozen baked goods. The company supplies its products to major retail chains, including Lidl, Kaufland, Konzum, and Spar, and also operates its own retail network, comprising over 70 locations. With a workforce of nearly 800 employees, PAN-PEK generated revenues exceeding €50 million in 2024.

With two production facilities located in Zagreb and Đakovo, PAN-PEK boasts a diverse product portfolio that includes various types of bread, pastries, snacks, sandwiches, and regional specialties. The company caters to both retail customers and the HoReCa (Hotel, Restaurant, and Catering) sector, highlighting its extensive reach in the food service industry.

Industry Overview in Croatia

The Croatian bakery industry has shown steady growth, with an increasing demand for both fresh and frozen baked products. A combination of evolving consumer preferences towards quality and convenience has propelled the sector into a phase of innovation and expansion. Consumer trends now favor clean label products, which has encouraged many manufacturers to enhance the transparency and quality of their offerings.

Moreover, the sector benefits from the country's strategic location along the Adriatic Sea, which facilitates trade and distribution of food products both regionally and internationally. The rise of modern retail chains has further contributed to this growth, as they demand higher volumes of diverse baked goods to meet consumer demand. This has created opportunities for producers like PAN-PEK to scale operations and adapt their product lines to market needs.

The HoReCa segment presents another avenue for growth, particularly as tourism in Croatia continues to rise. Establishments within the hospitality sector require reliable suppliers of quality baked goods, making it imperative for companies like PAN-PEK to maintain strong relationships with both retail and food service customers. Additionally, there is a growing focus on health and well-being, prompting bakeries to innovate with healthier alternatives.

All these factors converge to create a robust and evolving marketplace for baked goods in Croatia, poised for further development as consumer habits shift and the market becomes increasingly competitive.

The Rationale Behind the Deal

The acquisition of PAN-PEK by Inter Europol represents a strategic move to strengthen the latter’s position in the bakery market, both in Croatia and across Europe. By integrating one of Croatia's leading baking manufacturers, Inter Europol can enhance its product range and expand its operational footprint in the region.

This acquisition aligns with Inter Europol's growth strategy, which has been heavily reliant on acquisitions to bolster its market offerings and enhance its competitive advantage. The combination of PAN-PEK’s established market presence and Inter Europol’s expansive distribution channels is expected to create significant synergies and opportunities for growth, particularly in export markets.

Information About the Investor

Inter Europol S.A. is a family-owned company based in Poland, operational since 1989. Initially starting as a local bakery in Warsaw, it has grown to become the market leader in the bakery sector within Poland. Employing over 1,500 staff, the company's products—both fresh and frozen—are distributed throughout the European Union, Asia, and the Middle East.

Known for its commitment to high-quality production methods, the majority of Inter Europol’s products come with clean label certifications, indicating they are made from natural ingredients without emulsifiers or stabilizers. This sustainable and health-conscious production approach aligns well with current market trends and is further complemented by the company’s strategic growth initiatives, including recent acquisitions of food manufacturers like Bezgluten and Primavika.

View of Dealert

Evaluating the acquisition of PAN-PEK by Inter Europol presents a generally positive outlook for stakeholders involved. PAN-PEK's strong market position in Croatia provides Inter Europol with not only an immediate boost in market share but also an excellent platform to extend its product range and successfully penetrate new markets.

The successful integration of PAN-PEK could yield significant benefits, particularly in enhancing product offerings and driving revenue growth through expanded distribution capabilities. Furthermore, the ongoing trends towards health and wellness suggest that the demand for quality baked goods with transparent ingredients will continue to rise, making this acquisition a relatively low-risk endeavor.

However, challenges may arise, particularly in aligning operational practices and ensuring consistent product quality across both companies. It will be crucial for Inter Europol to focus on maintaining the brand equity and operational efficiencies that PAN-PEK has established to realize the full potential of this acquisition. Overall, while the deal has promising potential, effective management during the integration phase will be key to maximizing the investment's success.

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