Premia Selling Off Ice Cream and Frozen Food Business
Tallinn, Estonia-based AS Premia Foods announced on October 6 that it intends to sell its Baltic and Russian ice cream and frozen food operations for EUR 27,109,000 to a Ukrainian company. It will remain in the fresh and frozen seafood processing business, which generated EUR 47 million and accounted for 46% of revenues during the 12-month period that ended in June of 2014.
Premia’s extensive ice cream line, distributed under numerous brand names, ranges from cones and sticks to waffle cups and ice lollies. Its frozen food products include vegetables, berries, french fries, pizza, pastry and value-added meat items.
The buyer, Nordic Foods Holding Oa and Shiner Macost Ltd. (Nordic is a special purpose vehicle owned by Shiner Macost), will pay for the purchase in three installments. Additionally, Premia Foods’ interest bearing debt as of June 30 will decrease by EUR 1,868,000.
The owner of Shiner Macost is Andrey Beskhmelnitskiy, who is a food industry entrepreneur with global scope originally from Ukraine. Shiner Macost Ltd owns Food Union, a company that has consolidated the biggest dairy concerns in the Baltic states, continuing the traditions of Rigas Piena Kombinats (founded in 1927) and Valmieras Piens (founded on 1971). Beskhmelnitskiy operates in Europe, Russia and Asia, and built up Russia’s largest dairy producer, UNIMILK Company, which was sold in 2010 to global food industry giant Danone.
Katre Kõvask, Erik Haavamäe and Silver Kaur, the current members of the management board of AS Premia Foods, will continue in their roles after the closing of the contemplated transaction. Lauri Kustaa Äimä will resign and Indrek Kasela will remain as the member of the supervisory board of Premia Tallinna Külmhoone AS until the payment of the purchase price has been made in full.