EUROPE – Global investment firm PAG Private Equity has agreed to acquire a majority stake in Food Union Europe, a leading provider of ice cream and frozen treats across six European countries.

The equity acquisition involves obtaining shares from the founder and other private stakeholders in the transaction.

Upon completion of the deal and regulatory approval, expected in Q1 2024, PAG Private Equity will assume full operational control over dairy and ice cream production as well as direct-to-consumer distribution enterprises in various regions.

The regions include 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).

Arturs Cirjevskis, CEO of Food Union Group in Europe, along with previous general managers of the group companies, will retain their roles in managing Food Union Europe. The company will continue operating under its current corporate name and business structure.

Lincoln Pan, partner and co-head of private equity at PAG, expressed confidence in Food Union Europe’s market position across its core markets and emphasized PAG’s commitment to supporting the company’s growth and expansion.

PAG Private Equity has been invested in Food Union Europe since February 2017 and is already a stakeholder and Board Member of Food Union Europe entities. The financial details of the acquisition were not disclosed.

Food Union Europe, under the leadership of Arturs Cirjevskis, is positioned as a strong and resilient player in regions with anticipated growth.

The company’s focus on historically developed and robust product brands, coupled with ongoing investments in manufacturing technologies, automation, and operational excellence, is expected to further strengthen its presence in domestic markets and exports in the coming years.

PAG Private Equity has been an active investor in the food industry, particularly in frozen food. Recent acquisitions include Australian companies Patties and Vesco in the food and consumer sector.

These additions complement PAG’s existing consumer product portfolio, which includes retail franchises, chicken processing and production companies, and dairy producers.