"The transaction, pending final regulatory approval, was executed through the acquisition of equity from the founder and other private stakeholders. Specific financial details are not being disclosed," said a statement about the deal.
“PAG Private Equity has been invested in Food Union Europe since February 2017. We believe strongly in the company’s unrivaled market position across its core markets in Latvia, Estonia, Lithuania, Denmark, Norway and Romania. We look forward to working with the existing management to support Food Union’s continued growth and expansion,” said Lincoln Pan, Partner and Co-Head of Private Equity at PAG.
After the transaction and regulatory approval, which is expected in Q1 2024, full operational control over dairy and ice cream production and direct-to-consumer distribution enterprises in Europe will pass to PAG, which is an existing stakeholder and Board Member of Food Union Europe companies.
The operations include brands in Latvia (Rīgas piena kombināts, Valmieras piens and Premia FFL), Estonia (Premia TKH), Lithuania (Premia KPC), Denmark (Premier Is, Hjem Is and Frast), Norway (Isbjorn Is and Den Norske Isbilen) and Romania (Alpin57Lux).
In Latvia, company's Tio, Pols, Karlsons and Ekselence brands are a familiar sight in freezer cabinets.
Arturs Cirjevskis, CEO of Food Union Group in Europe, and the previous general managers of the group companies will continue to manage Food Union Europe, which will continue to operate under its existing corporate name and business structure.
“Food Union today is a strong, resilient, and well-positioned player in regions where further growth is anticipated... we anticipate further strengthening in domestic markets and exports in the coming years,” said Cirjevskis.
