Alternative investment group, PAG Private Equity has moved to acquire a controlling stake in Food Union Europe, ice cream and frozen product business, reports Neill Barston.
As the business explained, details of the deal for the Latvian-headquartered company are not being released, but have been agreed with equity from the founder and other private stakeholders, with the organisation having had influence within the company for more than six years.
“PAG Private Equity has been invested in Food Union Europe since February 2017. We believe strongly in the company’s unrivalled market position across its core markets in Latvia, Estonia, Lithuania, Denmark, Norway and Romania. We look forward to working with the existing management to support Food Union’s continued growth and expansion,” said Lincoln Pan, Partner and Co-Head of Private Equity at PAG.
After the transaction and regulatory approval, which is expected in Q1 2024, full operational control over dairy and ice cream production and direct-to-consumer distribution enterprises in Europe will pass to PAG, an existing stakeholder and Board Member of Food Union Europe entities. These operations include brands in Latvia (Rīgas piena kombināts, Valmieras piens and Premia FFL), Estonia (Premia TKH), Lithuania (Premia KPC), Denmark (Premier Is, Hjem Is and Frast), Norway (Isbjorn Is and Den Norske Isbilen) and Romania (Alpin57Lux).
Arturs Cirjevskis, CEO of Food Union Group in Europe, and the previous general managers of the group companies will continue to manage Food Union Europe. Food Union Europe will continue to operate under its existing corporate name and business structure.
“Food Union today is a strong, resilient, and well-positioned player in regions where further growth is anticipated. This is attributed to historically developed and robust product brands and the company’s focus on product innovation. 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 frozen food. Recent transactions include the acquisition of two leading Australian companies in the food and consumer sector – Patties, a well-known provider of savoury snack, appetiser, meal and dessert brands, and Vesco, a producer of high-quality frozen foods in Australia and New Zealand.