February 11 (SeeNews) - Slovenian private equity fund Alfi PE plans to buy local baby care firms Baby Center and Pikapoka, along with Croatian toys and children equipment wholesaler Apollo, and consequently merge the three to create Southeast Europe's leading company in the sector, Slovenian media reported.
The project is expected to be completed in the second half of 2020, news daily Delo reported earlier this week, adding that the merged entity will thereafter target entry into West European markets.
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According to the report, Alfi PE has signed a letter of intent to acquire majority stakes in the three firms, and has notified the employees and the respective regulators about its plans.
It will next carry out feasibility studies on the planned investments.
Alfi PE says on its website its investment potential is around 70 million euro ($76 million).
"The Fund is focusing on investing in developing, innovative and fast-growing first class SMEs and midcaps based or doing business predominantly in Slovenia and in Croatia," the company says.
Baby Centre is a market leader in Slovenia in the sale of baby, children and pregnant women products. It has been present on the market in the past 30 years.
Ptuj-based Pikapoka runs the Pikapolnica baby and kids care chain in Slovenia and the Bubamara chain in Croatia.
Apollo was established in 2004 and is already present internationally, offering all needed for newborns and children up to 8 years of age.
($=0.9173 euro)