Linas Agro Group - Notification on material event

AB Linas Agro Group acquires fertilizers trading business in Latvia

22 April, 2016

AB Linas Agro Group

Notification about material event



AB Linas Agro Group acquires fertilizers trading business in Latvia

AB Linas Agro Group received the permission of the Competition Council of the
Republic of Latvia to acquire fertilizers trading business in Latvia. The
subsidiary of AB Linas Agro Group, UAB Linas Agro Grūdų centras KŪB acquires
SIA Paleo, company that runs warehousing business, while SIA Linas Agro take
over the fertilizer trade business and trademark from SIA Latfert. It is
planned to spend in total EUR 4.59 million on acquisition. The transaction is
scheduled to end in October 2017. 



SIA Paleo is a fertilizer warehouse managing company with 4 branches in
different regions of Latvia - Tukumse, Skrunda, Iecava and Rezekne, where
fertilizers are being stored and packed. In total warehouses cover over 21
thousand square meters in almost 20 ha area. SIA Latfert is a fertilizer
trading company. In 2015 revenue of the company was EUR 14 million.  In 2015
the companies sold nearly 62 thousand tons of fertilizers in total. 



“We are running business in Latvia since 2003, and markedly expanding in this
country during the last five years: we acquired the poultry companies in 2013
and 2014, and opened a grain elevator in Jekabpils city in 2015. There is no
reason to stop expanding further. Over 2015/16 financial year, ending in June,
we plan to sell about 200 thousand tons of fertilizers, including 40 thousand
tons in Latvia. Expansion in this business without acquisitions is limited
because the market is practically not growing Lithuania and in Latvia it is
planned to grow no more than 2 percent per year. 



Acquisition of warehouses and professional team of fertilizer traders as well
as of well-known trademark in Latvia, Latfert is a natural step to expand
fertilizer sales in the Baltic area. We expect that this acquisition will make
us the third-largest seller of fertilizers in Latvia ", says Darius Zubas,
Managing Director of AB Linas Agro Group. 



After acquisition fertilizer traders will change their workplace from SIA
Latfert to SIA Linas Agro. 



AB Linas Agro Group expects that annual fertilizers sales In Latvia will reach
90 thousand tons already the second year after the business is taken over. 



About AB Linas Agro Group

AB Linas Agro Group is a parent company with subsidiaries that produce, handle
and merchandise agricultural and food products, also provide products and
services for farming. The Group operates in four countries – Lithuania, Latvia,
Estonia and Denmark. The core produced and traded products are grain, oilseed,
feedstuff, poultry and poultry products, also agricultural inputs (certified
seeds, plant protection products, fertilizers, agricultural machinery and
equipment). The Group is the leading exporter of grain and owns network of
modern grain storage facilities in Lithuania, also recently opened grain
elevator in Latvia. Also the Group is a major milk producer in Lithuania and
poultry producer in Latvia. The Group employs 2,250 people. 

The financial year of the company begins on 1 July. Consolidated revenue of AB
Linas Agro Group in the first half of 2015/16 financial year totaled EUR 367
million and EBITDA was EUR 13.6 million. 

From 17 February 2010 AB Linas Agro Group is included in the main list of
companies of Nasdaq Vilnius stock exchange. 



More information:



Tomas Tumėnas

Finance director of AB Linas Agro Group

Mobile +370 682 36 616

E-mail t.tumenas@linasagro.lt

Attachments:

2016-04-21_AB_Linas_Agro_Group_perka_trasu_prekybos_versla_Latvijoje Engl versija.pdf