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BPM Mezzanine Fund SICAV-SIF, SCA (BPM) has provided financing for the buy-out of a well-known Latvian dairy Smiltenes Piens. Smiltenes Piens is one of the leading Latvian dairy companies with a high quality product portfolio, ranging from dairy drinks to cottage cheese. Smiltenes Piens stands out with its excellent choice of cheese products, which are very popular in the Latvian market. The new owner of the Company, Mr. Armands Kovaldins, plans to continue with the same strategy and maintain strong foothold in the Latvian market, but also gradually increase the share of exports in the sales portfolio.
Commenting on the deal, Mr. Armands Kovaldins noted that the buy-out of Smiltenes Piens was a logical step for all parties involved. We respect and value very highly the contribution of Gita Murniece and Girts Strads (the exiting shareholders), who developed Smiltenes Piens over decades and turned it into a modern dairy with high quality products and strong brands. This forms a strong foundation to grow the business further and we believe that together with the existing management team we are able to achieve this.
“It is an excellent opportunity for us to back
the buy-out of such prominent company with strong brands, top-quality products
and high reputation. We believe Mr. Kovaldins together with the management team
can develop the Company further and the products of Smiltenes Piens can also be
well received in the export markets. We also consider the dairy industry to be
attractive with its countercyclical characteristics. The investment is an
awaited addition to BPM’s portfolio due to its stable nature in combination
with growth potential,” said Martin Reinson, Partner of BPM Capital.
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BPM Capital (www.bpmcapital.eu) is an independent investment manager operating out of two offices, in Tallinn and Warsaw. It has been founded and is managed by Kalmer Kikas, Martin Reinson, Paweł Zabrzycki and Priit Veering. BPM is supported by prominent international and domestic institutional investors. BPM was originated through the Baltic Innovation Fund initiative created by cooperation between Estonia, Latvia, Lithuania and the European Investment Fund.
Smiltenes Piens (www.smiltenespiens.lv) is a Latvian dairy company operating out of two production facilities
in Smiltene and in Blome. The Company’s key products include cheeses, dairy
desserts, dairy drinks, cottage cheese, sour cream, kefir, butter and milk.
Smiltenes Piens products are widely recognized and have received a number of
prizes and honors.