Food Union secures €214m investment from PAG, Meridian for China expansion
Food Union Group has secured a combined investment of €214m from equity firms PAG and Meridian Capital which it primarily intends to use in expanding its Chinese dairy business.
PAG is investing €161.6m while existing investor Meridian Capital will invest an additional €52.4m in the Latvia based global consortium of dairy and ice cream producers.
Food Union is involved in milk processing and ice cream manufacturing in Northern Europe.
The new investment will be used for the group’s overall expansion, especially in China where it has almost completed two modern dairy facilities.
Food Union Group global CEO and founder Andrey Beskhmelnitsky said: “Food Union has had a tremendous year in 2016. In Europe, we have solidified our position in our home markets and have acquired two ice cream producers in Norway and Romania.
“In China, we broke ground on two modern dairy plants which are expected to bring high-end dairy products to Chinese consumers by the beginning of 2018.”
One of the major investment management firms in Asia, PAG will bring its country-specific knowledge and operational experience to Food Union through the partnership.
PAG chairman and CEO Weijian Shan said: “There is a great demand among increasingly affluent and discerning Chinese consumers for high quality protein foods such as those Food Union produces.
“With its technology, knowhow and capabilities, Food Union is uniquely positioned to deliver what the Chinese market needs.”
Food Union stated that it will continue on developing high added value dairy and ice cream products in Europe apart from consolidating its market positions in the Nordics, Baltics, Central Eastern Europe and CIS countries. It will also look to expand its exports in China and the Middle East.
Image: Food Union started export of its dairy products to China in September. Photo: courtesy of Food Union Company.