Estonia's Agrone agrees to acquire Rīgas piena kombināts
Estonian fresh milk producer Agrone and Latvia's Rīgas piena kombināts have signed an agreement for a deal that would combine the two dairy companies' expertise. The transaction still requires approval from Latvian and Estonian competition authorities.
Estonian dairy group Agrone and Latvian company AS Rīgas piena kombināts have signed an agreement for Agrone to acquire the Latvian dairy processor. The planned deal also covers the company's subsidiary AS Valmieras piens. Under the agreement between the parties, the financial terms of the transaction have not been disclosed.
Completing the deal requires approval from the competition authorities of both Latvia and Estonia. Until then, the two companies will continue operating independently, and signing the agreement does not bring any immediate changes to the day-to-day operations of Rīgas piena kombināts or Valmieras piens. Both will continue production and cooperation with employees, clients and suppliers as before.
Complementary expertise
The planned transaction aims to combine the complementary strengths of two major Baltic dairy companies: Agrone's experience as a leading Northern European fresh milk producer focused on efficient and sustainable production, and the long-standing expertise of Rīgas piena kombināts and Valmieras piens in milk processing, product development, branding, marketing and retail partnerships. Rīgas piena kombināts' best-known brand is Kārums.
Agrone Group chairman Raul Jeets said the deal could create a strong foundation for further development and significantly boost the companies' competitiveness in Baltic and export markets. Rīgas piena kombināts chairman Artūrs Čirjevskis noted that the company, with 100 years of history in Latvia, would gain the opportunity to become part of a strong Baltic dairy group while retaining a solid basis for further developing its production, expertise and brands built in Latvia.
Rīgas piena kombināts supervisory board chairman Soren Lauridsen added that vertical integration would allow the company to accelerate innovation and further develop strategically important categories such as snack cheeses, curd snacks, milk drinks, yogurts and ready meals in both Baltic and international markets.
The companies said they would provide separate updates on further steps once the required regulatory approvals are obtained.
