Finnish beverage company Olvi Group has signed a deal to buy Estonian mineral water producer Värska Originaal.
In a statement today (15 September), Olvi said the deal expands would “unlock new growth opportunities in export markets”.
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The financial terms of the transaction were not disclosed.
The completion of the transaction is anticipated in the first quarter of next year, subject to the approval of Estonia’s competition authority.
Värska Originaal makes its products in Värska in south-east Estonia. The company produces natural mineral waters and a variety of infused and functional waters.
It employs approximately 70 individuals and churned out a production volume of 45 million litres in 2024.
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By GlobalDataVärska Originaal’s products are exported to countries including Latvia, Lithuania, Finland, Sweden and Ireland.
Olvi CEO Patrik Lundell said: “This is another concrete step in executing our multi-local growth strategy. We have stated that we are seeking inorganic growth in Europe through acquisitions, and it is our strategic goal to expand the share of our non-alcoholic products.”
Last week, Olvi entered into an agreement to acquire Banjalucka Pivara, a brewery located in Bosnia and Herzegovina, from Altima UK Value Partners.
Earlier this month, the group announced a deal to buy Valmiermuižas Alu, a Latvian producer of beer and beverages.
Olvi’s non-alcoholic product portfolio includes water, energy drinks and soft drinks sold under brands such as Olvi Vichy, Kane’s Soda Pop and Teho energy drinks.
The group added Värska Originaal’s operations are profitable and, with the additional production capacity, its non-alcoholic sales volumes are expected to grow by nearly 10%.
“Already, more than 40% of our total sales volume comes from non-alcoholic products, and at the beginning of the year we launched 87 non-alcoholic novelties. Offering a diverse range of products that meet consumer demand and evolving preferences is our strength and, with this acquisition, we will be able to provide consumers with even more moments of enjoyment,” Lundell said.
In the first half of the year, Olvi reported a 0.9% increase in net sales to €327.9m ($385.8m), though sales volumes dropped 3.1% to 487.5 million litres.
Operating profit fell by 8.2% to €38.7m and profit for the period decreased by 13.8% to €27.2m.
In 2024, Olvi’s net sales rose 4.2% to €656.9m, with volumes increasing 1.4% to 989.7 million litres. Operating profit saw a significant rise of 48.2% to €81.4m, while profit for the year increased by 62.3% to €62.4m.
