PAG agrees deal to acquire Food Union Europe

The Hong Kong-based firm has a food and ag portfolio that includes poultry businesses, ready-to-go food providers and a fast food chain.

PAG Private Equity has struck a deal to acquire a controlling interest in ice cream and other frozen foods provider Food Union Europe. Financial details were undisclosed.

The Hong Kong-based firm has been invested in the business since 2017 and purchased its latest set of shares from a founding partner and private stakeholders.

“We believe strongly in the company’s unrivalled market position across its core markets in Latvia, Estonia, Lithuania, Denmark, Norway and Romania,” said Lincoln Pan, partner and co-head of private equity at PAG. “We look forward to working with the existing management to support Food Union’s continued growth and expansion.”

The deal is expected to reach financial close in Q1 2024, at which point PAG will take control of Food Union Europe’s dairy and ice cream production facilities and direct-to-consumer distribution assets across the continent.

Food Union Europe’s brands include Latvian dairy company Dzintars, Estonian ice cream producer Eriti Rammus and Lithuanian ice lolly company Jocker, among others.

The acquisition was made by PAG Private Equity’s consumer and retail business. The firm also invests across healthcare, entertainment and education, among other sectors.

Other food businesses within PAG’s portfolio include Patties, an Australian provider of savoury snacks, appetisers, ready meals and dessert. The firm is also invested in frozen foods business Vesco, fast food business Craveable Brands, and poultry businesses The Cordina Group and Shandong Fengxiang.

“Food Union today is a strong, resilient, and well positioned player in regions where further growth is anticipated,” said Arturs Cirjevskis, CEO of Food Union Group in Europe.

“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.”