BinDawood Holding wins bid for E-Piim production assets
BinDawood Holding participated in the electronic auction through its Estonian subsidiary, JUUST & JUBN OÜ. The sale includes real estate used in E-Piim’s dairy operations, manufacturing machinery, other operating assets, contractual rights and stakes in associated companies. Most of the assets are in Paide and Põltsamaa.
The auction began at €80m. BinDawood’s offer reached €135.25m, exceeding the opening price by more than €55m. The Paide facility was built only a few years ago, at an estimated construction cost of about €154m. The European Investment Bank supplied a €29m loan towards the project.
The transaction remains subject to the signing of the required agreements and compliance with the auction terms. Other bidders can file objections on the working day after the electronic auction ends. BinDawood said it would report the closing of the proposed acquisition, or other material developments, in due course.
E-Piim makes cheese, whey-based products and other dairy goods for domestic and overseas sales channels. BinDawood estimates that the company accounts for roughly 15% of Estonia’s cheese market and ranks as the country’s fourth-largest cheese producer.
According to information released by BinDawood, the Paide plant can handle as much as 1,100 tonnes of milk per day. That is equivalent to approximately 40% of Estonia’s total milk output. The site’s yearly cheese-making capacity is about 36,000 tonnes.
BinDawood said the proposed purchase would broaden its business and sources of revenue, increase its exposure to food manufacturing and add production capacity. It also expects to draw on E-Piim’s established manufacturing and export operations and its local employees’ expertise. The Saudi group said the investment could diversify supply routes, support resilience to global and regional disruptions and contribute to Saudi Arabia’s food-security objectives.
BinDawood Holding is listed on Saudi Arabia’s stock exchange. Its activities include food retail, pharmacies, wholesale distribution, technology, marketing and food manufacturing. The group opened its first grocery store under the BinDawood name in Mecca in 1984, after starting as a small trading business.
