Latvian dairy firm Food Union has acquired Premia Foods’ ice cream and frozen food businesses in a EUR27.1m (US$34.1m) deal.

Food Union said the deal would see it “significantly expand the business in the Baltic States and Russia”.

The deal sees Premia exit the frozen goods and ice cream sectors. It will however retain its operations in fish products.

“Premia Foods is a professional team and has a lot of experience in the manufacture of ice cream and Premia is a very powerful and valuable brand in the Baltic, which we will continue to develop,” said Food Union shareholder Andrey Beshmelnickis. “We want to create new, superior products that will delight the Baltic people. Our goal is to lift Baltic ice-cream production and enjoyment of culture to a whole new level,” he added.

The deal will see Premia executives responsible for the two divisions join Food Union. The Premia plant in Tallinn will continue to run and all employees will retain their positions.