Saudi Arabia’s BinDawood Holding has revealed more details about its plans for the Estonian dairy assets of E-Piim, outlining an ambition that goes beyond the EUR 135.25 million acquisition itself.
The Saudi-listed group, whose Estonian subsidiary JUUST & JUBN OÜ won the auction for E-Piim’s production assets in Paide and Põltsamaa, plans to retain local expertise and production while using its international retail and distribution network to open new markets for Estonian dairy products.
BinDawood describes the acquisition as a long-term investment in Estonia’s food manufacturing sector rather than simply the purchase of production facilities. According to materials released by the group, its intention is to build on the existing Estonian industrial platform and connect it with markets in Europe, the Gulf Cooperation Council (GCC) countries and beyond.
“This acquisition represents a major milestone in BinDawood Holding’s food manufacturing strategy. E-Piim’s world-class production facilities, established export capabilities and highly skilled workforce provide a strong platform for future growth and product development. We also see significant opportunities to introduce premium Estonian dairy products to Saudi Arabia and capitalize on the growing demand for high-quality Baltic food products across the GCC,” said Ahmad AR. BinDawood, CEO of BinDawood Holding.
Production to remain rooted in Estonia
One of the clearest messages from BinDawood is that the group intends to build around E-Piim’s existing workforce rather than replace it.
Its stated priorities include retaining and developing local expertise, supporting long-term employment, keeping production in Estonia, strengthening relationships with farmers and suppliers, and creating new opportunities through access to additional international markets.
The group sees Estonia not simply as the location of two factories, but as a potential Baltic manufacturing hub.
BinDawood points to Estonia’s dairy-industry expertise, skilled food-production workforce, agricultural capabilities, established relationships with dairy producers, EU single-market access and connectivity with Baltic, European, Middle Eastern and US markets as reasons for the investment.
The Paide and Põltsamaa operations, according to the company, combine these advantages with industrial capabilities that would require substantial time and investment to recreate elsewhere.
Saudi distribution network could open a new market for Baltic dairy
The acquisition could also create a new route for Baltic dairy products into Saudi Arabia and the wider Gulf region.
BinDawood says it intends to strengthen partnerships with farmers across the Baltic region to support long-term supplies of milk and other ingredients. At the same time, products manufactured in Estonia could gain access to Saudi Arabia through the group’s existing retail, distribution and manufacturing network.
This gives the transaction a broader Baltic dimension. Rather than viewing the factories purely as Estonian production assets, BinDawood says its ambition is to strengthen the Baltic dairy ecosystem and expand the international reach of products manufactured in Estonia.
The group also sees opportunities to increase production utilisation, develop new dairy products and partnerships and expand exports both within the Baltic region and internationally.
Paide factory capable of processing 1,100 tonnes of milk per day
The scale of the acquired production platform is significant.
According to information provided by BinDawood, E-Piim has an estimated 15% share of Estonia’s cheese market and is the country’s fourth-largest cheese producer.
The Paide facility can process up to 1,100 tonnes of milk per day – equivalent to approximately 40% of Estonia’s total milk production – and has an annual cheese production capacity of around 36,000 tonnes.
The EUR 135.25 million transaction covers dairy-production-related real estate, production equipment and other operating assets, contractual rights and shareholdings in affiliated companies, primarily connected with the Paide and Põltsamaa operations.
Part of a wider shift from retail towards manufacturing
For BinDawood, the Estonian acquisition is part of a broader transformation from a predominantly retail-focused business into a diversified group spanning retail, distribution, technology and manufacturing.
The Saudi company traces its origins to a family-founded retail business and today operates across four strategic sectors. At the end of 2025, the group had more than 13,000 employees and reported revenue of SAR 6.35 billion. It also has more than 11 million registered loyalty customers.
Its expansion beyond traditional retail has accelerated in recent years.
In 2022, BinDawood acquired a 62% majority stake in International Applications Company, the technology company behind its BinDawood and Danube e-commerce platforms. The same year it acquired a majority stake in international marketing agency YKONE.
The group subsequently expanded its distribution operations through Jumairah Trading Company, entered pharmacy retail through Zahrat Al Rawdah, acquired 51% of Toy Triangle and moved further into food manufacturing through investments including Dubai-based Wonder Bakery and Vaza Food Company. The latter transaction involved the acquisition of a 51% stake for SAR 217.9 million.
The company says its existing retail and distribution operations provide knowledge ranging from product sourcing and category development to consumer analytics, logistics, private-label development and food service. It now intends to combine that commercial infrastructure with the dairy-production capabilities acquired in Estonia.
EUR 135.25 million investment gives BinDawood its first major Baltic dairy platform
BinDawood Holding is listed on the Saudi stock exchange under Tadawul ticker 4161 and remains associated with the BinDawood family, whose retail business dates back more than five decades.
The acquisition of E-Piim marks the group’s first major entry into Baltic dairy manufacturing and provides it with an industrial base inside the European Union.
For Estonia, BinDawood says its longer-term objectives include stronger and more competitive local production, continued opportunities for employees and suppliers, closer relationships with farmers, higher utilisation of the production facilities, development of new products and greater access to European and GCC markets.
The legal adviser to BinDawood Holding in the acquisition is Sorainen, with the legal team led by partner Sven Papp.
