German grain products manufacturer „H.&J. Bruggen KG“ is acquiring a 50% stake in Latvian grain processor „Rigas dzirnavnieks“ through a subsidiary.

The deal, the details of which are not disclosed by the parties, is subject to clearance by the Competition Council.

„Rigas dzirnavnieks“, the parent company of „Dobeles dzirnavnieks“, has explained that the transaction relates only to the processing of oat grain by forming a joint venture, while the production of flour and its products as well as the production of the „Herkuless“ and „Saimniece“ brands will continue in „Dobeles dzirnavnieks“. The transaction also excludes the local market distribution of „Rigas dzirnavnieks“ products.

According to Kristaps Amsils, Chairman of the Board of „Dobeles Dzirnavnieks“, this transaction is logical in view of the long-standing successful cooperation between „Rigas dzirnavnieks“ and „H.&J. Bruggen KG“.

The company „Rigas dzirnavnieks“ made a profit of EUR 953.2 thousand on revenues of EUR 31.279 million.

„Rigas dzirnavnieks“ produces grain processing products: wheat and rye flour, flour mixtures, flakes, rolled grains and cereals for industrial consumers, as well as packaged products for individual consumption. The company belongs to the „Baltic Mill“ group.

„H. & J. Bruggen KG“, with its main production facilities in Lübeck, Germany, has an annual turnover of €560 million and exports to almost 100 countries.