Don Don bakery takes over Pekarna Grosuplje for EUR 60 million

The European Bank for Reconstruction and Development (EBRD) is supporting the regional expansion of Serbia’s Don Don bakery through the takeover of Slovenia’s Pekarna Grosuplje with a €10.3 million loan as part of a financial package for a total amount of €60 million, the EBRD said today in a release.

As the EBRD Office in Belgrade told Tanjug news agency, Don Don's takeover of Pekarna Grosuplje, valued at EUR 60 million, is also backed by the following regional commercial banks: SKB Banka d.d., Ljubljana, Banka Koper d.d., Unicredit Banka Slovenija d.d., Societe Generale Srbija AD, Unicredit Bank Srbija AD, as well as the KJK private equity fund from Finland, an existing minority shareholder of Don Don. The funds will support the takeover and integration of Pekarna Grosuplje into the Don Don Group, which will thus become a leading industrial bakery in the markets of the former Yugoslavia able to cater to major retailers as well as serving as a platform for further expansion in the region.

- This is an important step towards the consolidation of a market suffering from fragmentation and inefficiencies. Bringing together two strong and well-established brands will be a win-win-situation for the companies, suppliers and customers. The loan package will not only finance the expansion of Don Don, but will also lead to a strengthening of corporate governance and operational processes - said Miljan Zdrale, EBRD Agribusiness Head for South-Eastern Europe.

On the other hand, Ales Mozetic, CEO and owner of Don Don, added: "The cooperation with the EBRD is of great significance for our company. The Bank's support for our development is a confirmation that we are on the right path. I am sure that this is only the beginning of a long and successful cooperation."

Originally funded as a small bakery in Slovenia in 1993, today Don Don is the leading industrial bakery in Serbia, but also active throughout the Western Balkans and Croatia, the release reads. In April 2014, KJK acquired a 25 per cent stake in the company, with the proceeds invested in further expansion. Don Don currently operates eight production plants and has 1,300 employees.