Panev?žys, Lithuania, 2013-10-28 14:00 CET (GLOBE NEWSWIRE) -- AB Linas Agro Group, that have 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 a few months ago, received the permission of the Competition Council of the Republic of Latvia to acquire poultry companies in Latvia. The transactions should be completed by January 2014.
AB Linas Agro Group estimates to spend EUR 13 million on acquisition of shares of the Latvian companies.
The largest of the purchased companies is a full cycle chicken meat producer AS Putnu fabrika Kekava (PFK), which cover the entire production cycle, from egg laying to the chicken and its products production. The other three companies are already co-operating: SIA Cerova hatch eggs and sells day-old chicks to companies Lielzeltini and Broileks. SIA Broileks raise chickens and sell them to Lielzeltini. While Lielzeltini raise chickens and produce poultry products, also produce feed for all other companies. AB Linas Agro Group plans to implement vertical integration in acquired companies – feed production, incubation and rearing, slaughtering and meat processing.
"We enter the business area, food production, that is closely related to our core business. By acquiring these companies we expect positive synergy with our core activities as we are one of the largest feedstuff suppliers in the Baltics. Feedstuff accounts for a vast majority of cost of goods produced in poultry companies. To quickly gain know-how in poultry business, we are currently collecting team that will develop our new business in Latvia. We are not newcomers to Latvia – two companies of our Group, running business in Latvia, earned LTL 218 million revenue and nearly LTL 14 million gross profit during the financial year 2012/2013", says AB Linas Agro Group Deputy Managing Director Andrius Pranckevi?ius.
Revenue of AS Putnu Fabrika ?EKAVA ( PFK ) reached EUR 33 million in 2012, SIA Lielzeltini gained EUR 21 million revenue, SIA Broileks – EUR 1.2 million, SIA Cerova – 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 Gr?d? centras K?B (controlling grain storages in Joniškis, K?dainiai, 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 Ž?B 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 Jungtin? Ekspedicija and other companies. The financial year of the Group begins on 1 July. The total headcount of the Group exceeds 1,140 employees. Consolidated revenue of AB Linas Agro Group for financial year 2012/2013 ended June 2013 totaled LTL 2,043 million, EBITDA – LTL 127 million.
Together with partners, the Group owns grain storage company Kar?emos Kooperatin? Bendrov?.
From 17 February 2010 AB Linas Agro Group is included in the main list of companies of NASDAQ OMX Vilnius stock exchange.
More information: Andrius Pranckevi?ius Deputy Managing Director of AB Linas Agro Group Phone +370 687 71 419 E-mail a.pranckevicius@linasagro.lt
