Falber Investments, the parent company of Estonian raw milk producer Agrone, has signed an agreement to acquire the Rīgas piena kombināts group, which also includes Valmieras piens, company representatives said.
Completion of the transaction is subject to approval by the competition authorities in Estonia and Latvia.
By agreement between the parties, the financial terms of the transaction have not been disclosed.
The companies said the planned transaction would combine the complementary expertise of two strong players in the Baltic dairy industry.
Raul Jeets, Chairman of the Management Board of Agrone Group, said Agrone sees significant potential in combining the knowledge and experience of the two companies. The Estonian company has consistently developed Agrone with a focus on innovative agriculture, strong environmental performance, animal welfare and the production of high-quality raw milk, while Rīgas piena kombināts has extensive expertise in dairy processing, product innovation, brand development and consumer engagement.
Once completed, the transaction could create a strong foundation for the companies’ further development and significantly strengthen their competitiveness in the Baltic and export markets, Jeets said.
Søren Lauridsen, Chairman of the Supervisory Board of Rīgas piena kombināts, said that following completion of the transaction, the company would be able to benefit from vertical integration and establish a stronger foundation for long-term growth.
Lauridsen believes the transaction will enable Rīgas piena kombināts to take advantage of market opportunities, accelerate innovation and continue developing strategically important dairy snack categories – including snack cheeses and curd snacks, dairy beverages, yoghurts and ready meals – in both the Baltic and international markets.
Artūrs Čirjevskis, Chairman of the Management Board of Rīgas piena kombināts, stressed that the planned transaction offers the company an opportunity to become part of a strong Baltic dairy group with expertise across the entire dairy value chain. At the same time, it provides a solid foundation for continuing to develop the production capabilities, expertise and brands the company has built in Latvia.
Until the transaction is completed, Agrone and Rīgas piena kombināts will continue to operate as independent companies. The signing of the agreement will not result in any immediate changes to the day-to-day operations of Rīgas piena kombināts or Valmieras piens.
The companies will continue their production activities and cooperation with employees, customers, milk suppliers and other partners as before. They will provide further information on the next steps once the necessary regulatory approvals have been obtained.
Agrone Group manages approximately 14,500 hectares of agricultural land in Estonia and produces around 70,000 tonnes of raw milk, 35,000 tonnes of grain and oilseeds, and 40 million eggs annually.
As previously reported, in early June this year, international ice cream producer Froneri became the owner of dairy processing company Rīgas saldējuma fabrika following the completion of the sale of Food Union’s European ice cream business. Food Union’s dairy business has since continued operating under Rīgas piena kombināts, which has also introduced a refreshed visual brand identity.
Rīgas piena kombināts generated revenue of €155.823 million last year, an increase of 3.3% compared with the previous year. However, the company posted a loss of €610,104, compared with a profit the year before.
The company was registered in 1991 and has share capital of €52.939 million. According to Firmas.lv, the ultimate beneficial owner of Rīgas piena kombināts is British citizen Derek Roy Crane, who resides in Hong.
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