The acquisition of dairy company Rīgas Piensaimnieks (RPS) has been completed. The agreement with Rīgas Piensaimnieks owner of 100% share acquisition was concluded in June 2015. In August, the transaction was authorized by Lithuanian Competition Council, while in the beginning of October – by the Latvian Competition Council. As a result the acquisition was fully completed on October 29, 2015.
“Consequently, the authorization of Competition Councils and conclusion of the acquisition, we have begun to develop a detailed plan for Rīgas Piensaimnieks integration in the Food Union group. Currently, there is no specific time table set for the integration process, however after completion of this process, Rīgas Piensaimnieks will become a part of truly international dairy company consisting of three milk processing companies in Latvia - Rīgas Piena Kombināts, Valmieras Piens and Rīgas Piensaimnieks, as well as of ice cream and frozen food producer Premia in Estonia and ice cream manufacturer in Denmark - Premier Is.
By joining the Food Union group, Rīgas Piensaimnieks and its brands Kārums and Dzintars will gain access to technology and innovation, as well as new opportunities for product distributions in Food Union target markets in the Baltics, Scandinavia, Europe, Russia, CIS countries and China will open up,” explains Meridian Capital Investment Director Nodir Normatov.
As previously reported, Rīgas Piensaimnieks was bought by an international private equity investment group Meridian Capital CIS Fund, which is a long-time financial partner of the leading Latvian milk processing company Food Union. The goal of Rīgas Piensaimnieks acquisition is further consolidation in the Food Union group.
Adviser of the acquisition was Prudentia, the leading independent investment banking and financial advisory company in Latvian.