AB Linas Agro Group has completed the acquisition of Latvian poultry companies and extended loans to two of them.
On 7 February 2014, AB Linas Agro Group acquired 100% of the shares in Latvian poultry companies SIA Lielzeltini, registration number 40003205232, SIA Cerova, registration number 43603019946, and SIA Broileks, registration number 50103262981. The total purchase price for these shares is about EUR 6.5 million (the final price may vary depending on additional conditions).
In addition, AB Linas Agro Group extended a loan in the amount of EUR 4,711,711 to SIA Lielzeltini and a loan in the amount of EUR 611,231 to SIA Cerova to refinance their previous loans. Both loans bear interest rate of 4% per year and have to be repaid by 30 June 2016.
SIA Broileks, SIA Cerova and SIA Lielzeltini are entities operating in poultry industry. Their core activity is meat poultry and broilers breeding. SIA Lielzeltini produces chicken meat and a range of processed chicken meat products, as well as combined feed for own consumption and sale, its revenue totaled EUR 26 million in 2013 (EUR 21 million in 2012). SIA Broileks is engaged in growing and sale of live chicken with the sales revenue of EUR 1.2 million in 2013 (same like in 2012). The core activity of SIA Cerova is incubation of hatching eggs and sale of day-old chicks. The sales of the company amounted to EUR 2.5 million in 2013 (EUR 2 million in 2012).
“We completed the acquisition process of the group of Latvian poultry companies. It took a little longer than expected, but ended successfully. Restructuring procedure of the largest Latvian chicken meat producer AS Putnu fabrika Kekava (PFK) ended in the first half of January. The performance of the company is good – revenue totaled EUR 38 million in 2013 and were 15% higher compared to 2012“, said Deputy Managing Director of AB Linas Agro Group Andrius Pranckevičius.
AB Linas Agro Group expects that in the future the acquired group of Latvian companies will generate revenue of around EUR 70 million.