This is the second acquisition for Malsena in the Baltics. Last year the group completed acquisition of Rigas Dzirnavnieks, the leading flour production company in Latvia. As a result Malsena has successfully become the first pan-Baltic grain processor.
According to Gintautas Migonis, the CEO of Malsena, the operations as well as the brand Veski Mati will remain unchanged.
“This acquisition provides a win-win situation. On the one hand, Malsena is about to produce even tastier and healthier products, on the other – we will bring additional effectiveness into our work and management on the daily basis. Covering the entire Baltic region creates synergy and continuous supply chain, strengthens our market position, and provides even wider choice for customers”, says Migonis.
Porta Finance acted as the exclusive financial advisor to Malsena in the transaction. Malsena’s legal advisor was Tark Grunte Sutkiene. The transaction is subject to Estonian Competition Authority approval.
Balti Veski is a grain processor based in Estonia with history dating back to the early 20th century. The company offers customers a wide variety of rice, buckwheat, millet, wheat and corn semolina, various kinds of flour, peas, beans, oat flakes, and rice flakes. Balti Veski markets its products under well-known Veski Mati brand.
Until now Balti Veski was owned by Helsingin Mylly, a significant processor of grain products in Finland. The company’s main raw material is locally grown Finnish grain processed for domestic and international food markets. Helsingin Mylly specializes in organic products and is today Finland’s largest processor of organic grains.
Helsingin Mylly is controlled by Puhk family, the descendants of the Estonian entrepreneur Jaak Puhk. Maret Puhk, the Chairman of Helsingin Mylly, comments that the decision to sell Balti Veski was made as part of Helsingin Mylly’s strategy to facilitate focusing on its long-term objectives.
Malsena is one of the largest and most advanced grain processing industrial groups in in the Baltics. Using modern milling technology the group produces a wide range of products, including different types of wheat and rye flour, flour mixes, wheat germ and bran. Malsena is owned by Amber Trust, a private equity fund dedicated to the Baltic region.