Agrokor's Ivica Todoric Sells Kozmo to Nexus Alpha

Konzum, the Croatian supermarket chain and subsidiary of Ivica Todoric's Agrokor, has sold 100% of its Kozmo operations to private open-end investment firm Nexus Alpha. Though little is known about the deal, there is speculation that Todoric put the retail drugstore chain on the block due to difficulties in remaining competitive with Drogerie Markt (DM), Croatia's industry leader with a quarter of the total market share.

Rumors had been circulating since last summer that Agrokor would dispose of Kozmo as part of a larger effort to shed non-core and under performing assets. Konzum informed the Zagreb Stock Exchange of the deal earlier this month after reaching an agreement with Nexus on 31 December.

Kozmo Drugstore (www.kozmo.hr)
The Kozmo Drugstore chain opened its first retail location in July 2005, in the northern Croatian city of Zagreb. In the years since the company's inception Kozmo has grown to a group of 42 stores employing 240 people throughout Croatia. The company provides retail customers prescription and over-the-counter drugs as well as household items, tobacco, literature, and other standard drugstore merchandise.

Nexus Private Equity Partners (www.nexus-pe.hr)
Nexus Private Equity Partners, based in Zagreb, Croatia, was founded in 2008 and will focus its investments on the Croatian and greater Southeastern Europe markets. Nexus Private Equity Partners has targeted three specific business segments for private equity and venture capital financing: project-based real estate development; equity investments in medium to large organizations undertaking expansion; and seed financing for entrepreneurs and start-up ventures with high growth potential.

Nexus Private Equity Partners originally anticipated raising EUR 30 million for its ALPHA fund, with funding remaining open from September 8th to October 7th, 2008. Nexus ALPHA is currently the largest private equity fund in Croatia, and a second round of fund raising will be opened in 2009 with the goal of increasing the size of the fund to EUR 50 million. Of the funds raised for Nexus ALPHA, 12% were contributed by institutional investors, 18% were contributed by high net-worth individuals, and 70% were contributed by corporate investors.

Nexus Private Equity Partners is currently analyzing investment opportunities for its ALPHA fund and has not yet publicly announced any capital commitments.