Finnish drinks major Olvi has signed an agreement to buy Bosnia and Herzegovina-based brewery Banjalucka Pivara from Altima UK Value Partners.  

Financial terms of the deal were not disclosed.  

The transaction is pending approval from competition authorities in Bosnia and Herzegovina and is expected to be completed by the first quarter of 2026. 

In a statement, the Sandels brewer said the deal “expands Olvi Group's geographical presence to a new region and opens new growth and export opportunities both across the Balkan and wider Mediterranean regions".

Banjalucka Pivara, set up in 1873, is based close to the city of Banja Lucka, in the northern part of Bosnia and Herzegovina, near the Croatian border.

Patrik Lundell, the CEO of Olvi Group, said: “This acquisition is the second step in executing our multi-local strategy, where we are seeking inorganic growth in Europe through both domestic add-on acquisitions and expansion into new markets.

"The company’s solid position in Bosnia and Herzegovina, strong and rapidly growing presence in Serbia, and high-quality production capabilities offer us a unique opportunity to grow across the Balkan region where we see long-term organic growth potential and growing tourism.

"At the same time, its central location enables us to build a bridge to the wider Mediterranean markets where we see significant opportunities to further bolster our export business."

Banjalucka Pivara portfolio also includes the beer brands Banjalučko, Crni Đorđe, Kastel and Nektar.

The brewer also plans to introduce non-alcoholic beverages and ready-to-drink cocktails, according to Olvi.

Banjalucka Pivara employs roughly 240 people. In 2024, the group booked reported net sales of €28m ($32.8m). The brewer also has the "fastest-growing brewery in Serbia", according to Olvi's statement.

Commenting on the deal in the same statement, Ilija Setka, the CEO of Banjalucka Pivara, said: “We are excited about the opportunity to leverage our strong route-to-market capabilities and expanding our range with non-alco and alco products from the Olvi Group portfolio.”

The deal comes just a week on from Olvi's acquisition of Valmiermuižas Alu, a Latvian beer and beverage manufacturer.

In the six months to the end of June, Olvi's net sales grew 0.9% to €327.9m. Sales volumes were down 3.1% at 487.5 million litres.

Its operating profit declined 8.2% to €38.7m, while profit for the period slid 13.8% to €27.2m.

In 2024, Olvi generated net sales of €656.9m, up 4.2% year on year. Volumes increased 1.4% to 989.7 million litres. Operating profit grew 48.2% to €81.4m. Profit for the period rose 62.3% to €62.4m.