China: PAG Private Equity to acquire majority stake in Food Union Europe

PAG Private Equity, a global investment firm headquartered in Hong Kong, has agreed to acquire a majority stake in Food Union Europe, a Latvia-based producer of ice cream with a presence in six European countries.

The fund will obtain shares from the founder and other private stakeholders involved in the transaction. After acquisition, PAG will take complete operational control of dairy and ice cream production, along with direct-to-consumer distribution enterprises across Europe.

On its website, Food Union Europe describes itself as the ice cream “champion” in the Baltics and Denmark, with leading national positions in Norway and Romania.

Commenting on the news, Food Union Group CEO Arturs Cirjevskis said: “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”.

The deal is expected to be completed in Q1 2024, subject to regulatory approval. Financial details of the transaction were not disclosed.

Source: Food Union Europe