AB Linas Agro Group completed the acquisition of part of the business from AUGA Group, AB
21 Luglio 2023 - 3:15PM
AB Linas Agro Group completed the acquisition of part of the
business from AUGA Group, AB
On 21 July 2023, AB Kauno Grūdai, owned by AB
Linas Agro Group, completed the acquisition of the cooperative
company Grybai LT by acquiring 100 percent of the
company's stock and paying the sellers a total amount of EUR
12,948,612.14. In addition, AB Kauno Grūdai refinanced loans
granted to the cooperative company Grybai LT in the past by the
bank and one of the sellers, UAB Baltic Champs, by granting new
loans to the cooperative company Grybai LT in the total amount of
EUR 4,121,813.15. Following the revision of the final financial
statements used to calculate the price, the price for shares may be
adjusted per the procedures set out in the share purchase
agreement.
The shares in Grybai LT were sold to Kauno
Grūdai by the cooperative companies AgroMilk, Juodmargėlis,
Šventosios Pievos, also UAB Baltic Champs and UAB AUGA Luganta, all
of which together owned 100% stake of Grybai LT. Two of the latter
sellers are owned by the public company AUGA group, while the
others are also related to this company through shareholders.
Grybai LT, a cooperative company based in
Širvintos with over 40 employees, is active in producing and
selling ready meals. The company operates a modern robotic factory
covering an area of around 3,600 sq meters. The main products
produced are ready-to-eat organic soups, curries, cereal meals, and
organic vegetables in packets - around 70 product names. The annual
production is 8-9 million packets of various products which are
exported to more than 30 countries. Grybai LT's revenue in 2022 was
EUR 7.1 million, consolidated earnings before interest, taxes,
depreciation, and amortization (EBITDA) was EUR 1.3 million, and
assets were EUR 7.9 million.
Linas Agro Group has plans to expand Grybai LT's
production activities by 3.7 times in 5-6 years, investing
approximately EUR 4.4 million in production expansion during that
period. Grybai LT's annual earnings before interest, taxes,
depreciation, and amortization (EBITDA) are expected to increase by
4.6 times, and the Group's EBITDA by 5-10%.
Earlier, AB Linas Agro Group had announced that
the transaction would require clearance from the Competition
Council of the Republic of Lithuania.
"In 2022, Grybai LT's gross revenue in the
Republic of Lithuania did not reach the threshold of EUR 2 million
set out in Article 8 of the Law on Competition of the Republic of
Lithuania, from which it is obliged to notify the concentration to
the Competition Council of the Republic of Lithuania, and,
therefore, the transaction did not require the clearance of the
Competition Council. This fact allowed the transaction to be
completed more quickly," explained Mažvydas Šileika, CFO of AB
Linas Agro Group, explaining why the transaction did not require
the approval of the Competition Council of the Republic of
Lithuania.
"The AUGA’s range of instant porridge in cups
and the business will remain part of the AUGA group as we have our
porridge line Activus. We have agreed that we will be able to use
the AUGA brand for 18 months for soups, curries, cereal meals,
ready-to-eat vegetables and pulses, and then we will replace it
with our own “Activus” brand, as it is a brand for active and busy,
but self-concerned people, especially for the younger generation,"
says Andrius Pranckevičius, Deputy Chairman of the Board of
Directors of AB Linas Agro Group and CEO of AB Kauno Grūdai.
AB Linas Agro Group was represented in the
transaction by the Law Firm Norkus & Partners COBALT, and the
companies selling the shares by the Law Firm WALLESS.
About AB Linas Agro Group
The 68 agribusiness and food companies AB Linas
Agro Group owns employ almost 5 thousand people. The Group's
financial year starts on 1 July. The Group's consolidated revenue
for the nine months of the 2022/2023 financial year exceeded EUR
1.5 billion, with a net profit of EUR 25 million.
Additional information will be provided by:
CFO of Linas Agro Group AB Mažvydas ŠileikaMob.
+370 619 19 403E-mail m.sileika@linasagro.lt
Andrius Pranckevičius, Deputy Chairman of the
Board of AB Linas Agro Group Mob. +370 687 71 419 E-mail
a.pranckevicius@linasagro.lt
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