BinDawood Holding to acquire AS E-Piim Tootmine for US$148M

ESTONIA – BinDawood Holding Co. has announced that its wholly owned subsidiary, Just and Go OÜ, has been awarded a bid to acquire assets belonging to AS E-Piim Tootmine in Estonia for US$148.1 million (EUR 135.25 million). 

Through its wholly owned subsidiary, BinDawood will acquire assets of E-Piim Tootmine’s dairy production business, including real estate, related operating assets, associated contractual rights and equity interests in investee entities.

The parties to the transaction are BinDawood Holding, through its wholly owned subsidiary Just and Go OÜ, and AS E-Piim Tootmine, represented by trustees Indrek Lepsoo and Olev Kuklase as the sellers.

 According to BinDawood, E-Piim Tootmine’s plant operates in Estonia’s dairy production sector, producing various cheeses, whey products and other dairy products, with established sales channels in domestic and international markets.

The assets involved in the potential transaction primarily comprise dairy production and packaging operations in Paide and Põltsamaa, Estonia.

The Paide facility has milk-processing capacity of up to 1,100 tonnes per day, equivalent to around 40% of Estonia’s total milk production, and annual cheese production capacity of approximately 36,000 tonnes.

Dairy in Estonia

In 2023, Estonia manufactured 895,000 tonnes of raw milk, 5% higher than the previous year. This is the highest figure in the last 31 years, according to the Estonian Statistical Department.

“The last time milk production was higher than now was in 1992, but productivity was 3 times less then. If 30 years ago 1 cow produced 3,500 kg of milk per year, now the average is 10,600 kg,” Anton Kardakov, senior analyst with the Statistical Department, revealed.

The annual increase in productivity was 486 kg of milk, which is a record for the last 20 years, the analysts indicated.

To a large extent, several market leaders secured this result. For example, Kaiu LT, a prominent Estonian dairy company, has achieved an average performance of 14,500 kg of milk.

241,000 tonnes of dairy products were manufactured from raw milk purchased in Estonia, including 104,000 tonnes of drinking milk, 52,000 tonnes of cheese and cottage cheese, 36,000 tonnes of fermented dairy products and 4,600 tonnes of butter.

A significant share of dairy products is also exported, primarily to other countries in the European Union.

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