Croatian retailer Studenac, the fastest-growing food chain in the country by revenue over the past five years, has completed its first international acquisition with the purchase of Slovenian chain Kea. The acquisition, which follows approval from Slovenia’s Competition Protection Agency, is a key step in Studenac’s broader regional expansion.

“We believe that this strategic move will allow us to leverage the potential of our store concept in Slovenia and, soon, on a broader regional scale,” a spokesperson for Studenac told bne IntelliNews.

The acquisition adds 32 Kea stores, primarily located in Celje, Maribor, Prekmurje and Primorje, to Studenac’s network of over 1,300 outlets. Kea, based in the town of Šentjur, operates stores averaging 250 square metres in size, with revenue reaching nearly €50mn in 2023.

“Studenac’s entry into Slovenia is a natural step in our international expansion,” said Michal Seńczuk, CEO of Studenac. “The values shared by Kea and Studenac, along with Kea's strong technical and market capabilities, provide a solid foundation for building a successful story in Slovenia – one that both employees and customers will be proud of.”

The company has rapidly grown since its 2018 acquisition by a fund managed by Enterprise Investors, expanding from its origins in Croatia's Dalmatia region to a nationwide network. 

Known for its proximity retail format, Studenac’s small, conveniently located stores focus on daily necessities. This is part of a broader trend seen in Southeast Europe and elsewhere towards the emergence of chains of convenience store and small supermarkets. 

Over the last six years, the company has tripled its size, growing from 385 stores to over 1,300 through both acquisitions and organic expansion.

“Studenac’s plans for international expansion are focused on strategically selecting opportunities that allow us to export our successful business model beyond Croatia's borders,” the company spokesperson said, describing the acquisition of Kea as “a natural first step”. 

“Slovenia and the acquisition of Kea mark the beginning of a new chapter in our story, which started 30 years ago within Croatia’s borders and is now expanding to regional markets.”

Slovenia presents an attractive market for Studenac, with favourable macroeconomic and demographic conditions. The country’s membership in the eurozone and its position as the second-highest GDP per capita among the EU’s 11 Central European members are seen as key factors in Studenac's decision to enter the market.

Research commissioned by Studenac indicates ample space for organic expansion, with no clear market leader in the proximity retail format. “There seems to be no clear leader in the proximity format in Slovenia, which gives us ample space to highlight our brand and fill gaps in the market,” the spokesperson added.

Since its founding in 1991 in Omiš, Croatia, Studenac has grown rapidly, becoming the largest food retailer by store count in its home country. The chain’s distinctive format, which it describes as “both small and essential”, has helped it build a strong presence in urban and rural communities alike.