Global alternative investment firm PAG Private Equity has agreed to acquire a majority controlling interest in Food Union Europe – a maker of ice-cream and frozen treats, operating in six European countries.
Lincoln Pan, partner and co-head of Private Equity at PAG added, "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."
Following regulatory approval, expected in the first quarter of 2024, full operational control of Food Union Europe's dairy and ice cream production and direct-to-consumer distribution enterprises in Europe will pass to PAG.
The deal includes 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).
Food Union Europe will continue to operate under its existing corporate name and business structure.
Arturs Cirjevskis, CEO of Food Union Group in Europe, and the general managers of the group companies will continue to manage Food Union Europe.
Cirjevskis stated, "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 over the coming years."
PAG Private Equity
PAG Private Equity is an active investor in the food industry, focusing on frozen food.
Most recently, it acquired two Australian companies in the food and consumer sector – Patties, a maker of savoury snack, appetiser, meal and dessert brands, and Vesco, a producer of frozen food in Australia and New Zealand.
PAG's consumer product portfolio also includes retail franchises (Craveable Brands), chicken processing and production companies (The Cordina Group and Shandong Fengxiang Co. Ltd.) and dairy producers (Youran Dairy).