Croatian baked goods producer Mlinar has attracted up to €50m ($58m) in equity financing from Europe's leading development bank to fund expansion.
The European Bank for Reconstruction and Development (EBRD) said it is providing the money to Mlinar's parent company See Bakery International to support an "expansion and modernisation strategy" in Croatia and the wider region.
It will go towards funding organic growth and also M&A, the EBRD said in a statement today (22 December).
The investment will also drive energy-efficiency improvements, boost production and promote inclusive workplace practices, with a focus on supporting female migrant workers.
Mlinar supplies major retailers, hospitality and the foodservice channel and exports to more than 20 markets.
The company also operates a bakery retail network in Croatia, Serbia, Slovenia, and Bosnia and Herzegovina.
Mladen Veber, president of the board of Mlinar, said: "The EBRD’s strategic entry into Mlinar validates the quality of our business model, financial performance and long-term potential. This represents a significant acknowledgment of the work we have done so far, as well as our strategic vision."
Earlier this year, Croatian investment company Bosqar Invest completed its acquisition of a majority share in Mlinar for around €100m.
The deal saw Bosqar, in partnership with existing shareholders of Panvita Group and Mlinar’s management team led by CEO Mladen Veber, take a 67% indirect stake in the bakery group. It is also a controlling shareholder of See Bakery International.
Natalia Zhukova, the EBRD’s head of food and agribusiness, said: “We are pleased to support our client Bosqar as they expand further in the food vertical through our investment in Mlinar’s ambitious growth strategy, which combines organic expansion with targeted acquisitions.”
She added: “We believe that, under Bosqar’s strategic leadership, Mlinar is well positioned to accelerate its growth and create sustained value.
“Our investment will also support Mlinar’s energy-efficiency initiatives and help advance higher standards of employee inclusion.”
Vanja Vlak, Bosqar’s CFO, said: “This investment marks a pivotal step in advancing Mlinar’s long-term growth strategy and further validates the strength of our operating model.
“The EBRD’s leadership in this round – and our ongoing partnership – reflects strong confidence in the progress we have achieved and the value we continue to create across our portfolio.”
