Saudi company buys main asset of bankrupt E-Piim dairy plant

The main asset of Estonia's bankrupt dairy producer E-Piim — its cheese plant in Paide — has been purchased by Bindawood, a company listed on the Saudi stock exchange. The auction result was first reported last week, but the winning bidder's name was not disclosed at the time.

The plant was sold at auction for €135 million, up from a starting price of €80 million. According to the business daily Äripäev, the winning bidder was Bindawood, which, once it obtains all necessary approvals, intends to acquire the dairy plants as part of its strategy to diversify its business segments, expand investment in the food sector, and strengthen its production and industrial capacity in food manufacturing.

The acquisition was carried out through Juust & Jubn OÜ, Bindawood's Estonian subsidiary. The Estonian firm's interests are represented locally by the law firm Sorainen.

Bindawood Holding reported revenue of €1.46 billion last year, with profit of €62.4 million. The company's shares are traded on the Saudi stock exchange.

Background on the bankruptcy

E-Piim was considered Estonia's most modern dairy enterprise but went bankrupt only a few years after its founding. The bankruptcy was attributed to disputes among owners, the costly construction of the new plant, and falling milk prices. The Paide cheese plant is capable of processing up to 1,200 tonnes of raw milk per day, and in 2025 more than 90% of its output was exported. The company's assets had a balance-sheet value of €193 million. The court declared E-Piim bankrupt on March 12.