Olvi Oyj — M&A Activity 2021

Mar 8, 2021

Olvi plc will become even stronger in Latvia through acquisition

Olvi plc will become even stronger in Latvia through acquisition

Olvi plc                      Stock Exchange Release 8 MAR 2021 at 10:00 am
Olvi plc will become even stronger in Latvia through acquisitionOlvi’s Latvian
subsidiary AS Cesu Alus is a leading player in the Latvian beverage market. Cesu
Alus is acquiring the entire stock of Piebalgas Alus, a widely known and
appreciated microbrewery in the Vidzeme province of Latvia. The acquisition
brings more strength to our product portfolio in premium craft beers and kvass
in the retail and HoReCa markets.

The Piebalga brewery was established in 1989. It is devoted to traditional
manufacturing methods and high-quality raw materials.

“We are very happy to get the renowned Piebalga beers and kvasses to supplement
our product offering. The Piebalga acquisition is an important part of our
corporate strategy into premium products. We want to offer consumers new, trendy
tastes and to strengthen our market position, keeping profitability in mind.
Cesu Alus has efficient logistics and a sales, marketing, and distribution
organisation all around the country. Thus, the market and sales outlook for
Piebalga products looks good,” says Eva Sietiņsone, Managing Director of Cesu
Alus, Olvi’s subsidiary in Latvia.

Cesu Alus had a sales volume of 70.9 million litres in 2020, and the company
made 37.4 million euro in net sales. The Piebalga brewery produced 2.7 million
litres and made 4.2 million euro in net sales. The company has production
capacity for almost 6 million litres.

”Olvi still has a good outlook to profitable development in the Latvian market.
The Piebalga brewery is extremely well suited to our growth strategy in the
Latvian market,” says Lasse Aho, Managing Director of Olvi Group.

The final sales price will be determined on the basis of Piebalga Alus’s near
-term performance.

The acquisition is subject to acceptance by the Competition Council of Latvia.

Olvi plc
Lasse Aho
Managing Director
telephone +358290 00 1050 or +358 400 203 600
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
www.olvi.fi