EU – Baltic States, Investments, Latvia, Legislation, Markets and Companies, Mergers and take-overs

Baltic Agro representatives said that they have concluded an agreement on purchase of the controlling stake in Tukuma Straume.

"We are satisfied with the deal. This acquisition expands our presence in the market, makes it more flexible and increases our production capacity. At present we have about 100 points of sale where pet food is sold. The knowledge and production capacity we now have obtained in Latvia will change much," said Henning Haahr, the CEO of Danish Agro, the group to which Baltic Agro belongs. He said that the acquisition of Tukuma Straume will help to implement several synergies among the group's companies because Tukuma Straume is close to another group's company, Vilomix Baltic.

Baltic Agro board member Ainars Upmanis said that as a result of the transaction Tukuma Straume's products will be sold in the Scandinavian and Northern European markets.

Tukuma Straume board chairman Aivars Podnieks said that attraction of the strategic investor will allow the company to reach its goals sooner and more efficiently.

In 2016, Baltic Agro generated EUR 2.952 million in profit on a turnover of EUR 140.291 million. Baltic Agro, founded in 1994, has a share capital of EUR 3.802 million and fully belongs to Denmark’s leading agricultural co-operative DAVA Agravis International Holding, uniting tens of thousands of farmers and agricultural producers.

According to Firmas.lv business database, Tukuma Straume in 2016 posted EUR 9.312 million in sales and EUR 712,298 in profit.

Tukuma Straume, founded in 1991, has a share capital of EUR 1.804 million. As Tukuma Straume was a joint stock capital, it did not have to report on its owners.