Estonian raw milk producer to acquire Latvia's largest dairy plant

Agrone, Estonia's largest agricultural group and the region's largest independent raw milk producer, announced on Wednesday through its parent company Falber Investments OÜ that it has signed an agreement to acquire the group of AS Rīgas piena kombināts, Latvia's largest dairy processing company and producer of the well-known Karūms brand.

The two sides agreed not to disclose the financial terms of the transaction, including the purchase price.

Agrone management board chairman Raul Jeets said the companies' knowledge and experience complement each other, creating significant potential. He noted that Agrone has consistently focused on innovative agriculture, environmental responsibility, animal welfare and high-quality raw milk production, while Rīgas piena kombināts brings strong capability in dairy processing, product innovation, brand development and consumer engagement.

Companies to remain independent for now

According to the statement, both companies will continue operating as separate and independent businesses until the deal is finalized. Signing the agreement will not bring any immediate changes to the daily operations of Rīgas piena kombināts.

The companies said they will continue production and cooperation with employees, customers, milk suppliers and other partners as before. Further steps will be communicated separately once the necessary regulatory approvals have been obtained.