PAG TAKES OVER FOOD UNION EUROPE AND BECOMES A MAJORITY SHAREHOLDER

2024-01-10 18:24:42

RIGA, Latvia, March 20, 2021 /PRNewswire/ — PAG Private Equity, a leading global alternative investment firm, has entered into an agreement to acquire a majority stake in Food Union Europe. Food Union Europe is a leading provider of ice cream and other frozen sweets to consumers in six European countries. The transaction, which is still pending final regulatory approval, was carried out through the acquisition of shares from the company’s founder and other private shareholders. Details of the financial terms are not disclosed.

“PAG Private Equity has held a stake in Food Union Europe since February 2017. We are absolutely convinced of the company’s undisputed market position in its core markets of Latvia, Estonia, Lithuania, Denmark, Norway and Romania. We look forward to working with current management to support Food Union’s continued growth and expansion,” said Lincoln Pan, Partner and Co-Head of Private Equity at PAG.

Upon completion of the transaction and regulatory approval, expected in the first quarter of 2024, full operational control of dairy and ice cream manufacturing and direct selling businesses in Europe will transfer to PAG, an existing shareholder and director of Food’s companies Union Europe. This includes brands in Latvia (Rīgas piena kombināts, Valmieras piens and Premia FFL), Estonia (Premia TKH), Lithuania (Premier KPC), Denmark (Premier Is, Hjem Is and Frast), Norway (Isbjorn Is and Den Norske Isbilen) and Romania (Alpin57Lux).

Arturs Cirjevskis, CEO of the Food Union Group in Europe, and the current managing directors of the group’s individual companies will continue to lead Food Union Europe. Food Union Europe will continue to operate under the existing company name and corporate structure.

“Food Union is currently a strong, resilient and well-positioned player in regions where further growth is expected. This is due to the historically grown and strong product brands and the company’s concentration on product innovations. With ongoing and upcoming investments in manufacturing technologies, automation and operational excellence in general, we expect further strengthening of domestic markets and export business in the coming years,” said Arturs Cirjevskis, CEO of Food Union Group in Europe.

PAG Private Equity is an active investor in the food industry, particularly in the frozen food sector. Recent transactions include the acquisition of two leading Australian food and consumer companies: Patties, a well-known provider of savory snacks, appetizers, prepared meals and desserts, and Vesco, a manufacturer of high-quality frozen products in Australia and New Zealand. These acquisitions complement PAG’s existing consumer products portfolio, which also includes restaurant franchise concepts (Craveable Brands), chicken processing and production companies (The Cordina Group and Shandong Fengxiang Co. Ltd.) and dairy products manufacturers (Youran Dairy).

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Linda Mežgaile,
Food Union Head of PR,
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