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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.
It is stated that by joining the forces of two business groups with Lithuanian capital operating for almost three decades, “a strong agro-industrial and food production company will be created that will operate in the Baltic States, which will be able to compete successfully in the Baltic States, Poland, Scandinavia and other Eastern and Western European markets. “
“The deal is very important, so we hope to complete it in 2021. in the spring. We are confident that this step will open new opportunities for us and allow us to establish ourselves in the food production sector and create a vertically integrated agri-food company that will generate a greater added value for customers in all areas of activity ”, said Darius Zubas, Chairman of the Board of Linas Agro Group.
The group of companies managed by AB Linas Agro Group has more than 2,100 employees. The Group’s financial year begins on July 1. The Group’s consolidated revenues for the 12 months of the 2019-2020 financial year amounted to LTL 658 million. EUR, the net profit was 9 million. EUR, assets under management amount to 405 million euros. EUR.
AB Kauno Grūdai, together with the Vilnius and Kaišiadorys poultry farms and subsidiaries, forms a group of food production companies with 3,900 employees. 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. EUR.
“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.
D. Zubas, Chairman of the Board of Directors of AB Linas Agro Group, emphasizes that a strong regional market player operating in the Baltic, Scandinavian and Polish grain trading, agricultural supply and food production sectors will help ensure stability. of local farmers and producers in an open and highly competitive EU. market.
“We hope that by being larger and more integrated we will be able to compete successfully with much larger Polish and Scandinavian companies. This will also benefit food consumers as it will increase the variety of products of Lithuanian origin that are offered to them. Our goal is to become the best food production and agricultural service company in the Baltic countries. We plan to pay close attention to customer service, new product development, modernization of production and processes, 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.
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