Falber Investments, the parent company of Estonian raw milk producer Agrone, has signed an agreement to acquire the Rigas piena kombinats group, which also includes Valmieras piens.
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 saw 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 Rigas piena kombinats 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.
Soren Lauridsen, Chairman of the Supervisory Board of Rigas piena kombinats, 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 Rigas piena kombinats 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.
Arturs Cirjevskis, Chairman of the Management Board of Rigas piena kombinats, 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 Rigas piena kombinats 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 Rigas piena kombinats 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 tons of raw milk, 35,000 tons of grain and oilseeds, and 40 million eggs annually. (BNN)