Infortar Acquires Estonia Farmid with Swedbank's Help

Infortar's subsidiary and Swedbank have reached an agreement whereby Swedbank will help Infortar acquire one of Estonia's largest agricultural companies – Estonia Farmid.

The Estonia Farmid OÜ consolidation group consists of three agricultural enterprises: Estonia OÜ, Kabala Agro OÜ, and Sõrandu Farm OÜ, which operate a total of 9,400 hectares of cultivated land and have 5,200 dairy cows and young animals on the farms. The group employs nearly 150 people.

"Swedbank's share in agricultural financing is over 40%, which is one of our priority sectors. We are pleased to see that there are companies like Infortar in Estonia that have the capacity and ambition to invest strategically in the important agricultural sector, and that our two long-term clients – Estonia Farmid and Infortar – found mutual compatibility to carry out the transaction," noted Mihkel Utt, head of Swedbank's corporate banking division.

Through this transaction, Infortar is expanding its footprint in the capital-intensive agricultural sector, and one of Estonia's longest-established agricultural companies will have as its owner one of Estonia's largest companies in Infortar. "Estonia Farmid has grown into one of the strongest agricultural enterprises in Estonia; in addition to dairy farms, they own what are likely some of Estonia's most fertile, well-maintained and cultivated lands. Agriculture is a cornerstone of the economy alongside industry and services, and Estonian milk is competitive in the region for its high quality," noted Ain Hanschmidt, chairman of Infortar's board.

Infortar operates in seven countries, with its main areas of activity being maritime transport, energy, and real estate. Infortar owns a 68.5% stake in AS Tallink Grupp, a 100% stake in AS Elenger Grupp, and a diverse and modern real estate portfolio of approximately 141,000 m². In total, Infortar's group includes 110 companies, and excluding associated companies, Infortar employs 6,228 people.

Estonia Farmid is one of the strongest companies in the sector, standing out for both its land holdings and exceptionally strong milk production – the average milk yield per cow at Estonia's milking farm is among Estonia's highest, reaching 13,300 kilograms. Estonia Farmid OÜ also owns a 40% stake in Oisu biogas plant, which reduces the carbon footprint associated with milk production. In addition to milk production, the company cultivates 27,000 tons of grain and rapeseed annually.