International ice cream manufacturer 'Froneri' has entered into an agreement to acquire the ice cream business of the European dairy group 'Food Union', including the ice cream business in Latvia, reports 'Food Union', according to LETA.
The financial details of the deal are not disclosed.
The proposed deal, which still needs to be approved by the Latvian Competition Council, will only affect the ice cream business in Latvia. After its separation from the dairy segment, it will be established as a separate legal entity. The deal is expected to be completed within the coming months.
The remaining dairy business of 'Food Union', associated with dairy producers - JSC 'Rīgas piena kombināts' and JSC 'Valmieras piens' - is not included in the deal, and its owner remains the same, the company clarifies.
In the coming months, after consultations with employee representatives, a plan will be developed for the separation of the ice cream and dairy businesses in Latvia.
The management teams of both companies will be formed by current employees of 'Food Union' in Latvia.
In Latvia, 'Food Union' produces ice cream under the brands 'Pols', 'Tio', 'Ekselence', 'Karlsons', and others. According to 'Food Union', under the management of 'Froneri', these brands will be able to reach a wider audience and benefit from a global portfolio of brands and available resources while maintaining local identity and quality.
In turn, the separation will allow the dairy business to focus on key categories of dairy products, notes 'Food Union'.
The company also emphasizes that the ice cream and dairy production businesses operate on fundamentally different supply chains - producing ice cream requires a special cold logistics management system.
'Froneri' is an international company founded in 2016 as a joint venture between 'Nestlé' and 'PAI Partners'. It operates in more than 25 countries, with revenues exceeding five billion euros and more than 12,000 employees worldwide.
It was previously reported that the turnover of the 'Food Union' group, which includes 'Rīgas piena kombināts' and 'Valmieras piens', amounted to 151.9 million euros last year, which is 1.1% more than in 2023, while the group's gross profit increased by 2.4% to 26.9 million euros.
The largest owner of 'Food Union' is 'PAG Private Equity'.
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