Today AUGA group, AB signed share sale and purchase agreement to acquire 100%
share capital of UAB Raseiniu Agra for EUR 2.5 million. After the deal is
completed, the area cultivated organically by AUGA group companies will
increase by 5.2 thousand hectares of rented land.
UAB Raseiniu Agra was established in October as a result of spin-off procedure
from UAB Agra Corporation, shareholders of which decided to withdraw from
agricultural business and to concentrate in the area of investment property
management. All assets related to the agricultural business (buildings,
machinery and equipment), working capital, EUR 3.9 million of financial
liabilities, land lease contracts were transferred to the newly established
company, also land under UAB Agra Corporation ownership were rented to UAB
Raseiniu Agra on the long-term lease agreements. UAB Raseiniu Agra does not own
any agricultural land.
After the spin-off UAB Raseiniu Agra will cultivates 5.2 thousand hectares of
rented land. Before reorganization UAB Agra Corporation group companies
cultivated this land with annual production of around 25 thousand tons of
various grains.
"This acquisition will enable us to increase the volume of organic production
for end users in the future. By 2019, we plan to finalize the organic
certification of all the land rented by Raseiniu Agra," says Linas Bulzgys, CEO
of AUGA group.
According to him, this acquisition will help AUGA group to reach its strategic
goal of providing organic food products at affordable price to consumers in
Lithuania, Europe and other regions, effectively utilizing production methods
and controlling processes from field to shelf.
"This acquisition will increase our resources for production and will allow us
to use the production and human resources of both companies even more
efficiently. Most of the cultivated land used by the acquired company is close
to our organic farming areas in Raseiniai and Jurbarkas regions, thus we will
be able to efficiently integrate this new company into AUGA group, including
all of its currently employed 33 people. After strengthening our production
base, we will be in a very solid position to meet increasing demands for
organic products both locally and internationally," adds L. Bulzgys.
The acquisition should close upon receiving the necessary approval from the
Competition Council of the Republic of Lithuania.
More information:
General Manager
Linas Bulzgys
+370 5 233 5340© 2017 GlobeNewswire
