The parent company of Estonia’s ‘Agrone’ is acquiring the largest dairy processing company in Latvia

The parent company of “Agrone”, Estonia’s largest agricultural group and raw milk producer, its parent company “Falber Investments” has signed an agreement to acquire “Rigas piena kombinats”, Latvia’s largest dairy processing company.

The deal also includes “Valmieras piens”, a company belonging to the group. Approval from the Estonian and Latvian competition authorities is required to complete the transaction. In accordance with an agreement between the parties, the financial terms of the deal are not being disclosed, “Agrone” reported.

According to the company, the planned transaction will combine the complementary expertise of two strong Baltic dairy sector companies: “Agrone’s” experience in efficient and sustainable raw milk production, and “Rigas piena kombinats” and “Valmieras piens” in the areas of milk processing, new product development, brand creation, marketing, sales and cooperation with retail partners.

“Rigas piena kombinats” holds a strong market position in several dairy product categories and has succeeded in transforming legendary local brands into modern ones that are popular throughout the Baltic states, the best-known of which is „Karums“. “We see great potential in the complementary knowledge and experience of the two companies,“ – noted Raulis Yeatsas (Raulis Jeitsas), Chairman of the Board of “Agrone”.

According to him, the merger will provide a solid foundation for the companies’ further development and significantly increase their competitiveness both in the Baltic states and in export markets.

Until the transaction is finalised, “Agrone” and “Rigas piena kombinats” will continue to operate as independent companies. The companies will continue production and their cooperation with employees, customers, milk suppliers and other partners as usual, and will announce further steps separately once the necessary approvals for the merger have been obtained.

Currently, “Rigas piena kombinats”, together with its subsidiary “Valmieras piens”, is one of the leading dairy processing companies in Latvia. The company produces a wide range of dairy products and develops brands well-known in Latvia and the Baltic states, such as “Karums”, “Lakto”, RASA, “Dzintars”, “Limbažu piens”, “Valmiera”, “Rasens” and “Majas”.

“Rigas piena kombinats” exports around a third of its production to more than 35 countries worldwide. In 2023, the company’s consolidated turnover exceeded 155 million euros.