Parent company of Agrone, Estonia’s Largest Raw Milk Producer, Signs Agreement to Acquire AS Rīgas piena kombināts

Falber Investments OÜ, the parent company of Agrone, Estonia’s largest agricultural group and the region’s largest independent raw milk producer, has signed an agreement to acquire the group of AS Rīgas piena kombināts, Latvia’s largest dairy processing company. The group also includes AS Valmieras piens, which is part of the proposed transaction. Completion of the transaction is subject to approval by the Estonian and Latvian competition authorities. By agreement of the parties, the financial terms will not be disclosed.

 

The proposed transaction would bring together the complementary capabilities of two strong Baltic dairy businesses – Agrone’s expertise as a leading Northern European producer of raw milk, with a focus on efficient and sustainable production and the long-standing experience of Rīgas piena kombināts and Valmieras piens in dairy processing, new product development, brand building, marketing, sales and cooperation with retail partners.

 

“Rīgas piena kombināts holds strong market positions in several dairy product categories and has successfully transformed local legends into modern brands loved by consumers across the Baltics, the best known of which is Kārums. We see significant potential in the two companies’ complementary knowledge and experience. We have consistently developed Agrone, with a focus on innovative agriculture, a leading environmental footprint, animal welfare and the production of high-quality raw milk, while Rīgas piena kombināts is highly capable in dairy processing, product innovation, brand development and consumer engagement. Once transaction is closed, this will create a powerful foundation for the companies’ further development and significantly enhance their competitiveness in both the Baltic and export markets,” says Raul Jeets, Chairman of the Management Board of Agrone.

 

“Following completion of the transaction, we will be able to benefit from vertical integration and build an even stronger foundation for long-term development. This comes at a particularly exciting time for the global dairy market, with consumer preferences evolving rapidly and new consumption occasions and product categories emerging. We believe this combination will put Rīgas piena kombināts in a strong position to capture these opportunities, accelerate innovation and further develop our strategically important dairy snacking categories – snacking cheeses and curd snacks, dairy drinks, yoghurts and ready meals – across the Baltic and international markets,” adds Soren Lauridsen, Chairman of the Supervisory Board of AS Rīgas piena kombināts.

 

“Rīgas piena kombināts and its subsidiary Valmieras piens have 100 years of experience in Latvia, producing high-quality, delicious dairy products, advancing innovation and creating brands loved by consumers. The proposed transaction gives us the opportunity to become part of a truly strong Baltic dairy group with expertise across the entire dairy value chain –something we have long aspired to. At the same time, it creates a strong foundation for continuing to develop the production, expertise and brands we have built here in Latvia,” emphasizes Artūrs Čirjevskis, Chairman of the Management Board of AS Rīgas piena kombināts.

 

Until transaction completion, Agrone and Rīgas piena kombināts will continue to operate as separate and independent businesses.Signing 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 production and cooperation with employees, customers, milk suppliers and other partners as before. The companies will communicate next steps separately once the required regulatory approvals have been obtained.