Dairy processor Cesvaines piens AS has signed an agreement to sell its majority stake to Smiltenes piens AS. This strategic move follows a thorough market evaluation aimed at ensuring the company’s long-term stability and access to broader export markets, while preserving the distinct cheese-making heritage of Cesvaine. The deal is subject to approval by the Competition Council.
Sustainability and future investments
For the shareholders of Cesvaines piens, this decision is a targeted response to intensifying competition within the Baltic region. Partnering with a strong industry peer will allow the company to not only solidify its market standing but also attract necessary investments for modernisation. “At the same time, the company’s identity, brand values, and long-standing dairy processing traditions will be safeguarded,” emphasizes Guntars Zīle, Partner at COBALT and Head of the M&A Practice Group.
Both Cesvaines piens and Smiltenes piens are dairy processors with more than a century of history, refined craftsmanship, and consistently growing turnover. This synergy will directly benefit consumers through an enhanced product range and maintained quality standards.
Transaction process and legal advisory
COBALT M&A team provides full legal support to Cesvaines piens during the transaction, including preparing transaction documents, and assisting client in the negotiation process.
The COBALT team is led by Partner Guntars Zīle and Specialist Counsel Elīna Ločmele, with legal support from Associate Vadims Zvicevičs and Junior Associate Kārlis Ošs.
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