January 10 (SeeNews) – Latvia-based ice cream and frozen deserts provider Food Union Europe, which owns the Alpin57Lux ice cream maker in Romania, said on Wednesday it has agreed to sell a majority stake to private equity firm PAG Private Equity.
The deal is pending regulatory approval and its financial terms were not disclosed, Food Union Europe said in a press release.
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The transaction is expected to close in the first quarter of 2024 and will see PAG gain full operational control over Food Union Europe’s dairy and ice cream production and direct-to-consumer distribution brands, including those in Latvia, Estonia, Lithuania, Denmark, Norway, and Romania.
“With ongoing and upcoming investments in manufacturing technologies, automation, and operational excellence in general, we anticipate further strengthening in domestic markets and exports 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, especially in the frozen food sector. The company recently acquired two Australian companies in the food and consumer sector – Patties and Vesco.
Food Union is active in the fast-moving consumer goods industry (FMCG) in six countries, where it employs over 2,500 people and generates revenues of 290 million euro ($317.4 million). The group acquired Romanian ice cream maker Alpin57Lux in 2016.