Estonian company agrees to buy Kārumsi producer

Estonian raw milk producer Agrone has signed an agreement to acquire the group of Latvia’s largest dairy processing company, AS Rīgas piena kombināts, ERR reported. The company produces products under the popular Kārumsi brand, among others.

The buyer is Falber Investments OÜ, the parent company of Agrone, Estonia’s largest agricultural group and the region’s largest raw milk producer. The parties agreed not to disclose the purchase price.

“We see great potential in the complementary knowledge and experience of the two companies,” Agrone board chairman Raul Jeets said.

Jeets said Agrone had focused on innovative agriculture, a strong environmental footprint, animal welfare and high-quality raw milk production. He added that Rīgas piena kombināts had demonstrated strong capabilities in dairy processing, product innovation, brand development and consumer engagement.

Until the transaction is completed, the two companies will continue operating as separate and independent entities. The signing of the agreement will not immediately change the day-to-day operations of Rīgas piena kombināts, the announcement said.

Both companies will continue production and cooperation with employees, customers, milk suppliers and other partners as before. Further steps will be announced once the necessary regulatory approvals have been obtained.

Agrone is Estonia’s largest independent raw milk producer and one of the leading raw milk producers in the Baltic region and Northern Europe.