Agrone agrees to buy Latvia’s largest dairy processor

Falber Investments OÜ, the parent company of Agrone, signed an agreement to purchase the group of AS Rīgas piena kombināts. The deal was announced on Wednesday. Rīgas piena kombināts produces the Karūms brand and is described as Latvia’s largest dairy-processing company.

The parties have agreed not to disclose the value of the transaction. Until the deal is completed, the two businesses will operate as “separate and independent” companies.

The agreement does not immediately change Rīgas piena kombināts’s daily operations. Production and cooperation with employees, customers, milk suppliers and other partners will continue as before, according to a statement.

Raul Jeets, chairman of Agrone’s management board, said the companies had complementary expertise. He said Agrone had developed its business around innovative agriculture, environmental performance, animal welfare and high-quality raw milk, while Rīgas piena kombināts had capabilities in dairy processing, product innovation, brand development and consumer engagement.

The companies will announce further steps separately after the required regulatory approvals have been obtained. Agrone is Estonia’s largest independent raw-milk producer, and is also among the leading raw-milk producers in the Baltic states and Northern Europe.