AB Linas Agro Group today announces that it has entered into an agreement to acquire four Latvian poultry companies: AS Putnu Fabrika Kekava, SIA Lielzeltini, SIA Broileks and SIA Cerova. Linas Agro is planning to integrate the operations of the acquired companies to a single value chain – from feed production, poultry operations to processing. The acquired businesses are expected to generate approximately €70 million of sales annually.
„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, slaughtering and meat processing“, says Andrius Pranckevičius, Deputy Managing Director of Linas Agro.
The transaction is subject to clearance from local competition authorities and is expected to complete by December 2013. Porta Finance is acting as a financial advisor to Linas Agro in relation to the acquisitions.
Linas Agro is an agribusiness group active in production and trade of grain, oilseeds, feedstuff and agricultural inputs. The Group is active in Lithuania, Latvia, Estonia, and Denmark. Consolidated revenue of the Group for nine months of FY 2012/2013 totalled LTL 1,658 million (€480 million), and EBITDA LTL 116 million (€34 million). Linas Agro was founded in 1991 and listed on the Vilnius Stock Exchange in 2010.
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