September 30 (SeeNews) - Slovenian retailer Mercator said on Friday it has officially completed the sale of its Modiana- branded apparel and drug stores to Montecristo SL, a local subsidiary of Hong Kong-based EMKAY Industries, in a bid to focus on its core activity.
From October 1, Modiana will be managed by the new owner, who will take over operations at all locations and purchase all fixed assets, Mercator said in a filing with the Ljubljana Stock Exchange.
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"The business priorities shall continue to include modernization of operations, furthermore the brand portfolio is planned to be partly revised and extended, and private labels will be developed to allow pricing attuned to the needs of modern customers", Mercator noted.
The new owner shall also take over all Modiana employees.
Montecristo Holding is a subsidiary of EMKAY Industries Hong Kong, founded in 1974 and specializing in textile sales since 1988. It currently employs 45 people and is headquartered in Hong Kong. In Europe, the company operates as Montecristo Cyprus holding company, with a subsidiary Montecristo Romania, managing three brands: Lee Cooper, Kenvelo, and Time Out.
It is Montecristo's strategic policy to become a vertically oriented trader with the strongest presence in Southeastern Europe.
Modiana runs 48 stores in Slovenia, Croatia, Serbia, and Bosnia and Herzegovina. It employed 685 people at end-2015.