The Competition Council of the Republic of Lithuania has allowed Linas Agro Group to implement concentration by acquiring KG Group
Today, AB Linas Agro Group received permission from the Competition Council of the Republic of Lithuania to implement the concentration by acquiring a controlling stake in AB Kauno Grūdai, AB Kaišiadorių Paukštynas and AB Vilniaus Paukštynas and related companies. The transaction is planned to be completed in July, when the parties have fulfilled the terms of the share purchase agreement signed at the beginning of October last year.
Upon successful completion of the transaction, AB Linas Agro Group will acquire 34 companies operating in the three Baltic States, Russia, Belarus, Poland and other countries.
The merger has also been authorized by the competition authorities of Latvia, Estonia, Poland and Russia.
"Following this acquisition, Linas Agro Group will become a vertically integrated food and agricultural business group, providing products ‘from the field to the table’ and creating greater added value for customers in all areas of activity," notes Mažvydas Šileika, Finance Director of AB Linas Agro Group.
To finance the transaction, the syndicated loan will be provided to AB Linas Agro Group by three banks: Luminor, Swedbank and SEB Bank.
According to M. Šileika, around one third of the transaction amount will be financed from own funds, and the syndicated loan provided by the banks will account for 70 percent of the value of the transaction.
Linas Agro Group will provide more information on the agreements with the banks and the transaction itself upon completion of the acquisition procedures.
About AB Linas Agro Group
AB Linas Agro Group, together with its subsidiaries makes the Group of Companies established in 1991 and operates in four countries - Lithuania, Latvia, Estonia and Ukraine. All companies within the Group employ more than 2,100 people.
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. It is also one of the leaders in supplies of agricultural inputs (such as certified seeds, fertilizers and agricultural machinery) in Lithuania and has a seed preparati0on plant. The Group owns seven agricultural companies in Lithuania and is a major milk producer. It is the largest poultry producer in Latvia, where it owns four poultry companies.
AB Linas Agro Group consolidated revenue for the nine months of the financial year 2020/2021 amounted to EUR 712 million, gross profit was EUR 29.2 million. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 17.1 million.
Mažvydas Šileika, Finance Director of AB Linas Agro Group
Mob. +370 619 19 403