As part of the transaction, Agrone Group, through its parent company, acquired a 100 percent stake in Food Union Management, which holds majority stakes in both Latvian dairy companies. The stake was purchased from the previous owner, Food Union Luxembourg Holdings II S.à r.l.

The transaction was completed following approval from the Estonian and Latvian competition authorities and was financed by SEB. The price will not be disclosed by agreement between the parties.

Agrone CEO Raul Jeets said the transaction was historic for the dairy industries of both countries.

"Rīgas piena kombināts is a company with almost a century of history, a strong market position and well-known and beloved brands throughout the Baltics, such as Kārums and Lakto. By combining Agrone's experience in raw milk production with Rīgas piena kombināts' expertise in milk processing, product development and sales, we will have a good foundation for increasing the entire group's business volumes, improving efficiency and strengthening competitiveness," he said.

Jeets said Agrone has been working for years to expand its operations from milk production into milk processing and new export markets.

Artūrs Čirjevskis, chairman of the management board of AS Rīgas piena kombināts, said the company's goal is to continue offering customers and consumers high-quality and tasty dairy products.

"We are pleased that the transaction has been completed. From now on, we are part of a strong Baltic dairy group that covers the entire dairy value chain. This has been our long-term ambition," he said.

Joosep Kadak, head of corporate banking at SEB, which financed the transaction, said that Agrone is a good example of how an agricultural company that has grown on Estonian capital is taking the next step toward becoming an integrated Baltic company.

The change of ownership will not initially bring any changes to the day-to-day operations of Rīgas piena kombināts or Valmieras piens, or to their relationships with employees, customers, raw milk suppliers and other partners.

Production and deliveries will continue as usual. As a next step, the management teams of Agrone and the Latvian companies will jointly develop a strategy for further development.

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