Saudi retail group BinDawood Holding, bidding through its Estonian subsidiary JUUST & JUBN OÜ, has won the auction for the Paide and Põltsamaa production assets of bankrupt dairy company AS E-Piim Tootmine with a bid of €135.25M. The transaction is not yet final, Postimees Majandus reports.
Completion requires the signing of the necessary agreements and the fulfilment of the auction conditions. Other participants in the electronic auction may also submit objections on the working day following its conclusion.
Saudi buyer targets Paide and Põltsamaa production assets of E-Piim
The potential transaction covers real estate connected to E-Piim’s dairy operations, production equipment and other operating assets, contractual rights, and ownership interests in related companies. The assets are located mainly in Paide and Põltsamaa.
E-Piim produces cheese, whey products and other dairy products for established domestic and international sales channels. BinDawood estimates that the company holds about 15% of Estonia’s cheese market, making it the country’s fourth-largest cheese producer.
The Paide plant can process up to 1,100 tonnes of milk a day, equivalent to around 40% of Estonia’s total milk production, according to information disclosed by BinDawood. Its annual cheese production capacity is approximately 36,000 tonnes.
Bid rose more than €55M above the starting price
The Paide and Põltsamaa production units were offered at a starting price of €80M. The winning bid reached €135.25M, more than €55M above the initial price.
The Paide plant was completed only a few years ago, with total construction costs estimated at approximately €154M. The European Investment Bank provided a €29M loan to help finance its construction.
BinDawood said the acquisition would diversify its business and revenue sources, expand its investments in food manufacturing, and strengthen its production capacity. The company also expects to use E-Piim’s existing production and export capabilities, as well as the expertise of its local workforce.
The Saudi group said the investment could diversify its supply channels and improve resilience against global and regional disruptions. It also linked the proposed acquisition to Saudi Arabia’s food-security objectives.
BinDawood Holding is listed on the Saudi stock exchange and operates across food retail, pharmacies, wholesale distribution, technology, marketing and food manufacturing. The group grew from a small trading company and opened its first BinDawood-branded grocery store in Mecca in 1984. BinDawood said it will announce completion of the potential transaction, or any other material developments, in due course.
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