Estonia: Eesti Pagar acquires Maiznica Dinella

Paide / EE. (ep) Eesti Pagar AS, one of Estonia´s largest bakeries, has acquired Maiznica Dinella AS, Latvia´s third-largest bakery based in Daugavpils at the river Daugava in the south of the country. Veikko Vaarja, boad chairman of Eesti Pagar: «An important factor leading to the transaction was, that we have two common Finnish competitors in Estonia and Latvia and we can compete with them better by cooperating within one group», he said to local newspapers. Vaarja added that Dinella was a financially viable company with a strong market position that creates a good basis for further expansion. «Until now, Dinella has been focusing mainly on supplying baked products to rural areas and has about 20 percent of the Latvian market. The experience and know-how of Eesti Pagar in product development and marketing will definitely help Dinella to increase its business volumes», he said. In 2009 Dinella produced 12’000 tonnes of baked products. The company´s revenue amounted to EEK 201 million EEK (9,12 million LTL or 2,64 million EUR). Dinella employs 460 people. Eesti Pagar produced 16’000 tonnes of baked products in 2009 and the company´s market share in Estonia is about a third. The company´s revenues were 352 million EEK or 22,49 million EUR last year. Eesti Pagar is an Estonian-owned company that produces white bread, dark bread and pastry products and is currently Estonia´s second-largest bakery company in Estonia. Today Eesti Pagar employs approximately 400 people. Products are baked in Paide and Võru factories.