Major transaction: Linas Agro Group acquiring the agriculture giant Kauno grūdai

AB Linas Agro Group vertically integrated agricultural and food industry group acquires AB Kauno grūdai group of companies (KG Group) – one of the biggest, agriculture and food business groups across the Baltic States.

The acquisition will form an agriculture market’s leader, the revenue of which will exceed 1 billion, making it one of the top 5 Lithuanian companies’ groups by revenue. After the transaction AB Linas Agro Group will employ more than 6’000 employees, making it the second-largest employer in Lithuania. The acquirer and the target will form a group who will control more than 110 companies established over more than 8 countries.

Both parties’ activities are divided into grain and poultry sectors. These sectors develop separate integrated businesses that supplement each other and collectively form the farm-to-table production chain. This chain ensures the traceability and control of every manufacturing process, which helps to guarantee the high quality of the produced products and services.

AB Linas Agro Group shares are and will remain after the transaction publicly traded via Nasdaq Baltic.

Our team is leading the transaction from the beginning of negotiations with the sellers, the financing companies and insurers who provide insurance for the sellers’ liability. Motieka’s Corporate and M&A team has drafted the transaction documentation, following-up and coordinating the performance of conditions precedent, coordinates merger clearances in all of the affected jurisdictions and hopes to lead the transaction to a successful closing. The transaction also involves a significant amount of corporate restructuring actions in order to prepare the groups for closing, all of which are managed by our lawyers. We wake up and go to sleep with this transaction in order to lead it to a successful closing.

Even if the financial details may not be indicating the transaction’s significance, its complexity, scale, dimension and establishment of world-class player should make it one of the largest transactions signed in Lithuania in 2020 if not in this decade.

Experience