BinDawood wins bid to acquire Estonian dairy plant assets for SAR 585.9M

Logo of BinDawood Holding Co. 

BinDawood Holding Co. announced that its wholly owned subsidiary, JUUST & JUBN OÜ, won a bid to acquire assets belonging to AS E-Piim Tootmine in Estonia for SAR 585.85 million (EUR 135.25 million).

In a statement to Tadawul, the company stated that the acquisition covers the assets of a dairy products manufacturing plant, including real estate, related operating assets, associated contractual rights, and ownership interests in investee entities.

The potential transaction will be financed through available financing facilities, the company said, adding that its completion is subject to fulfilling the applicable bid conditions and obtaining the relevant regulatory approvals.

AS E-Piim Tootmine operates in Estonia’s dairy production sector, manufacturing various cheese and whey products, among others, and serving established sales channels in local and international markets. The company has an estimated 15% share of Estonia’s cheese market, ranking fourth in the local market.

The assets subject to the potential transaction mainly include dairy production and packaging operations in the Estonian cities of Paide and Põltsamaa.

The Paide plant has milk processing capacity of up to 1,100 tons per day, equivalent to around 40% of Estonia’s total milk production, while its annual cheese production capacity stands at around 36,000 tons.

BinDawood said the potential transaction supports its strategic objectives of diversifying its business and revenue sources, expanding investments in the food sector, and strengthening its food production and manufacturing capabilities through targeted investments.

The transaction would enable the company to leverage the existing production, operational and export capabilities of the assets, as well as specialized expertise in the dairy products sector.

It is also expected to enhance supply chain resilience and diversify sourcing, particularly amid evolving global and regional developments, while creating opportunities for operational and commercial synergies with the company’s existing activities.

The company expects the potential transaction to support future growth and expansion opportunities and strengthen its presence in the food manufacturing sector, in line with its strategic objectives and efforts to create sustainable long-term value.

It will also support Saudi Arabia’s plans to enhance food security and help achieve the company’s strategic plan to diversify its revenue sources over the medium term.

The company expects the potential transaction to have a positive financial impact on the company and its shareholders over the medium to long term, noting that there are no related parties involved.

BinDawood said it will announce the completion of the potential transaction or any other material developments in due course.