Slovenian baker Don Don has entered into an agreement to buy Pekarna Grosuplj, the in-house bakery business of regional retailer Mercator.

Annoucing the deal, Mercator said Pekarna Grosuplj would be well-positioned for growth within Don Don, benefiting from the firm's distribution channels and product expertise.

"The transaction which paves the way for further growth of Pekarna Grosuplje… With this transaction, the Pekarna Grosuplje gains a dynamic and innovative strategic owner who will provide a new drive for further development of high-quality products. The presence of the company Don Don in international markets will also allow Pekarna Grosuplje to strengthen its export orientation," Mercator said.

Representatives at Don Don were unavailable for comment at time of press.

According to Mercator, Pekarna Grosuplje is Slovenia's second-largest bakery in terms of production volume. The group produces types of bread, 41 types of rolls and other bakery products, and 14 types of fine pastry. The business has 217 employees.

The sale is subject to regulatory approval and completion is expected in the first half of the year. Financial details were not disclosed.

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