AB Linas Agro Group is planning to acquire poultry companies in Latvia
Vilnius, Lithuania, 2013-07-03 12:16 CEST --
AB Linas Agro Group signed agreements with Latvian private and legal persons on acquisition of 87% of shares in Latvian company AS Putnu fabrika Kekava, acquisition of 100% of shares in Latvian company SIA Broileks, acquisition of 100% of shares in Latvian company SIA Cerova and acquisition of 100% of shares in Latvian company SIA Lielzeltini. The transactions should be completed by December 2013, their completion is subject to certain conditions precedent, including obtaining of permission of the Competition Council of the Republic of Latvia. AB Linas Agro Group's financial advisors have been Porta Finance while legal advice has been provided by Raidla Lejins & Norcous.
AB Linas Agro Group estimates preliminary to spend EUR 12.5 million for the acquisition of shares of the Latvian companies
“AS Putnu fabrika Kekava, SIA Broileks, SIA Cerova and SIA Lielzeltini are entities operating in poultry industry. Their core activity is meat poultry and broilers breeding. We intend to acquire all the companies jointly.
We believe that poultry farming is a growing, viable and profitable industry even though the target companies are in need of restructuring. We see the opportunity to expand and diversify our activities by adding higher value-added products. A vertical integration will be implemented in acquired companies – feed production, eggs hatching and raising, slaughter and meat processing. Furthermore, the activities carried out by Latvian companies have a lot of synergy with the current activities of AB Linas Agro Group. We sell around 1.5 million tons of grains and feedstuffs per year, will forward some of the quantities to feed production in Latvia“, said Deputy Managing Director of AB Linas Agro Group Andrius Pranckevičius.
According to Andrius Pranckevičius, the largest of the purchased companies is a full cycle chicken meat producer AS Putnu fabrika Kekava (PFK). The company sells unprocessed chicken meat and chicken meat products. Revenue of the company totaled EUR 33 million in 2012. The company exports 27% of its products to EU countries. During the crisis, the company’s financial performance deteriorated and as a result it is undergoing the legal protection process and restructuring which should end by January, 2014. As a result the company is not fully utilizing its production capacity. SIA Lielzeltini produces chicken meat and a range of processed chicken meat products, as well as combined feed for own consumption and sale, its revenue totaled EUR 21 million in 2012 financial year. SIA Broileks is engaged in growing and sale of live chicken with the sales revenue of EUR 1.2 million in 2012. The core activity of SIA Cerova is incubation of hatching eggs and sale of day-old chicks. The company incubated 5.9 million chicks in 2012 financial year and sales of the company amounted to EUR 2 million.
AB Linas Agro Group expects that in the future the acquired group of Latvian companies will generate revenue of around EUR 70 million.
About AB Linas Agro Group
AB Linas Agro Group is an agribusiness parent company engaged in the production and trade of grains, oilseeds, feedstuff and agricultural inputs. It controls companies in Lithuania, Latvia, Estonia and Denmark. The group consists of international agricultural production trading company in Lithuania AB Linas Agro, grain storage company UAB Linas Agro Grūdų centras KŪB (controlling grain storages in Joniškis, Kėdainiai, Kupiškis, Pasvalys, Šakiai district, Šiauliai and Vilkaviškis), Latvian trading company SIA Linas Agro, international trading company Linas Agro A/S in Denmark, group of companies ŽŪB Landvesta, managing agricultural land, holding of agricultural companies UAB Linas Agro Konsultacijos, agricultural inputs supplier UAB Dotnuvos Projektai, operator of lignin biofuel accumulation UAB Lignineko, logistic company UAB Jungtinė Ekspedicija and other companies. The financial year of the companies begins on 1 July. The total headcount of the Group exceeds 970 employees. Consolidated revenue of AB Linas Agro Group for nine months of financial year 2012/2013 totaled LTL 1,658 million, EBITDA – LTL 116 million.
Together with partners, the Group owns grain storage company Karčemos Kooperatinė Bendrovė.
From 17 February 2010 AB Linas Agro Group is included in the main list of companies of NASDAQ OMX Vilnius stock exchange.
Deputy Managing Director of AB Linas Agro Group
Phone +370 687 71 419