AB Linas Agro Group has signed share purchase and sale agreements with the shareholders of AB Kauno Grudai, AB Kaišiadoriu Paukštynas and AB Vilniaus Paukštynas with the aim to acquire the block stock of shares of these and related companies. The total amount of the transaction is not disclosed by agreement of the parties. The transaction will require the permission of the Competition Council.
By joining the forces of two Lithuanian owned business groups operating for almost three decades, a strong agribusiness and food production company operating in the Baltic States will emerge, which will be able to successfully compete in the Baltic, Polish, Scandinavian and other Eastern and Western European markets.
"The transaction is very considerable, and we hope to complete it in the spring of 2021. We are confident that this step will open new opportunities for us - let us establish ourselves in the food production sector and build a vertically integrated agri-food company that will create higher added value to the customers in all businesses", says Darius Zubas Chairman of the Board of AB Linas Agro Group.
AB Linas Agro Group together with its subsidiaries has over 2,100 employees. The financial year of the Group begins on 1 July. Consolidated revenue of AB Linas Agro Group in twelve months of 2019/20 financial year totaled EUR 658 million, net profit was EUR 9 million, assets amounted to EUR 405 million.
AB Kauno Grudai together with Vilnius and Kaišiadorys poultry companies and other subsidiaries form one of the most successful groups of food production companies having 3,900 employees. In 2019, the consolidated group's revenue amounted to EUR 563 million. The net profit was EUR 5.4 million, assets amounted to EUR 332 million.
"Over the decades, together with the team I am proud of, we have managed to create one of the most successful groups of companies in Lithuania, whose activities cover the entire production chain from the field to the table. Operating in an international market, we watch how the giants of the global market merge their assets and businesses, pushing smaller companies out of the market. We understand that Lithuanian businesses also need to unite as soon as possible. Linas Agro Group and KG Group are groups of companies of a similar type and way of thinking: both are owned by Lithuanians and pay taxes in Lithuania, have a deep understanding of business, customers and employees, are well familiar to the international market and successfully operate in it. I am convinced that by joining the forces of both companies, the work I have started will be successfully continued, the companies will strengthen and even in high competition will create success stories of Lithuanian products not only in the local but in the global market as well", says Tautvydas Barštys, the founder of KG Group.
Darius Zubas, Chairman of the Board of AB Linas Agro Group, emphasizes that a strong regional market player operating in the Baltic, Scandinavian and Polish grain trade, agricultural supply and food production sectors will contribute to ensuring stability for local farmers and producers in a highly competitive and open EU market.
"We hope that being bigger and more integrated, we will be able to compete successfully with much stronger Polish and Scandinavian companies. This will also benefit food consumers, as the variety of products of Lithuanian origin offered to them will grow. We seek to become the best food production and agricultural company in the Baltic States. We plan to pay close attention to the development of new products, modernization of production and processes, environmental protection and energy efficiency; it will also be crucial to continue to foster the values, culture and concern of employees in both organizations and to maintain excellent relationships with buyers and suppliers", says D. Zubas.
About AB Linas Agro Group
AB Linas Agro Group together with its subsidiaries makes a Group of companies, that have been founded in 1991 and operates in four countries - Lithuania, Latvia, Estonia and the Ukraine.
The companies of the Group produce, handle and merchandise agricultural and food products, also provide products and services for farming. The Group is the leading exporter of Lithuanian and Latvian grain and has own network of 13 grain elevators. Also is one of the leaders in supplies of agricultural inputs (such as certified seeds, fertilizers and agricultural machinery) in Lithuania, has seed processing plant. The Group owns seven agricultural companies in Lithuania and is a major milk producer. It is the biggest poultry producer in Latvia as well and has four poultry companies.
This year, the Group acquired 67.51% stock of agricultural company Kedainiai District ŽUB Nemunas, and in August the transaction of acquisition of 100% shares of startup UAB Geoface has been completed.
Additional information will be provided by:
Mažvydas Šileika, Finance Director of AB Linas Agro Group
Mob. +370 619 19 403
E-mail m.sileika@linasagro.lt (mailto:m.sileika@linasagro.lt)
