Gogol Mogol Group, a Russia-based dairy processor, has acquired a 40.31% stake in SIA DK Daugava, a Latvia-based dairy processor and bakery for €1.8m.
The cquisition enables DK Daugava to get access to the Russian market and allows to clear all debts to its creditor Swedbank.
The remaining 59.69% stake is owned by SIA DK Daugava founder Aigars Vaivars.
Vaivars was quoted by balticbusinessnews.com as saying that the company has cleared its loans and has also decreased prices by 20-30% in the Latvian market.
"DK Daugava is a producer of premium dairy products, and this is the market we will be entering in Russia, too," Vaivars added.
"My business partners have also bought shares in the company's brand, and we will enter the Russian market with these brands.
"There is a strong demand among the wealthier Russian customers for premium dairy, but they do not really produce such products themselves."
DK Daugava produces and distributes several dairy products in Latvia that are packed in cartons, plastic bottles and glass bottles.