The transaction is listed at €27.1m but must still be approved by the shareholders meeting of the ice-cream maker scheduled in three weeks, as well as by the ruling of Latvia’s Competition Council.
The goal of the acquisition is to notably expand business in the Baltic states and Russia, by uniting the leading regional ice-cream brands under the Food Union group of trademarks. The focus of Food Union’s corporate mission will remain innovation, product excellence and the passion to create new tastes according to consumer preferences.
“We’re pleased to take onboard one of Estonia’s food industry leaders – Premia Foods. Their team is professional and with great experience in the ice-cream market, being a strong and valuable Baltic brand that we will keep developing,” said Beshmelnitsky.
No particular restructurings of executives or staff, nor of the production process have been announced, with business planned to continue as usual, pending the shareholders’ decision.
Food Union group came about in 2011 when the Russian entrepreneur of Ukrainian descent acquired and merged two of Latvia’s largest dairy production companies – JSC Rigas piena kombinats (RPK) and JSC Valmieras piens. The purchase of JSC Premia Foods seems certain to add another creamy scoop to the conglomerate’s collection of milky goods.