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The total amount of the transaction is not disclosed by agreement of the parties. The transaction will require the permission of the Competition Council, according to Nasdaq Baltic.
“Over the decades, together with the team I am proud of, we have succeeded in creating one of the most successful groups of companies in Lithuania, whose activities span the entire production chain from field to table. Operating in an international market, we see how the giants of the global market combine their assets and businesses, pushing the smallest companies out of the market. We understand that Lithuanian companies also need to join as soon as possible.
Linas Agro Group and KG Group are groups of companies of a similar type and thinking: they both have Lithuanian capital and pay taxes in Lithuania, have deep knowledge of business, customers and employees, know the international market well and operate successfully in the. I believe that by joining the forces of both companies, the work that I have started will continue successfully, the companies will be strengthened and even in the conditions of active competition they will create success stories of Lithuanian products not only in the local market but also in the global one ” says Tautvydas Barštys, founder of the KG Group.
The company claims that by joining forces of two business groups with Lithuanian capital, it will establish an agro-industrial and food production company operating in the Baltic States, which will be able to compete in the Baltic States, Poland, Scandinavia and other markets in Europe. East and West.
Darius zubas
“The deal is very important, so we hope to complete it in the spring of 2021. We are confident that this step will open new opportunities for us and allow us to consolidate in the food production sector and create a vertically integrated agri-food company that will generate greater added value for customers in all areas of activity ”, says Darius Zubas, Chairman of the Board of Linas Agro Group.
D. Zubas, chairman of the board of Linas Agro Group, emphasizes that this step will be beneficial for consumers, since the variety of products of Lithuanian origin that are offered to them will grow.
“We plan to pay close attention to customer service, new product development, production and process modernization, environmental protection and energy efficiency. We will continue to nurture the values, culture and concern of the employees of both organizations and we will strive to maintain excellent relationships with buyers and suppliers ”, says D. Zubas.
The group of companies managed by Linas Agro Group employs more than 2.1 thousand people. workers. The consolidated group’s income for the 2020 financial year amounted to 658 million. The net profit was 9 million euros. assets under management amount to 405 million euros. euros.
Kauno Grūdai, together with the Vilnius and Kaišiadorys poultry farms and subsidiaries, forms a group of food production companies with 3.9 thousand employees. workers. In 2019, the consolidated group’s revenue was LTL 563 million. The net profit was 5.4 million euros. assets under management amount to 332 million euros. euros.
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