COBALT represented the shareholders of AB Kauno grūdai who transfered their controlling stakes in this and related companies to AB Linas Agro Group

COBALT advised the shareholders of AB Kauno grūdai group companies (totalling about EUR 800 million of annual revenue in 2019), one of the leading agribusiness groups in Lithuania, on selling shares to AB Linas Agro Group, the leading agribusiness company in the Baltics. The value of the transaction is not disclosed but the market estimates that the value of the deal could be around EUR 200 million.

Authorizations to implement the concentration have also been issued by the competition authorities of Latvia, Estonia, Poland and Russia.

The merger of AB Kauno grūdai and AB Linas Agro Group groups will increase their competitiveness and productivity, improve distribution and procurement, enable the introduction of more modern and efficient technologies, facilitate access to external funding, and will put them on a path to expansion outside the Baltic region.

AB Kauno Grūdai together with Vilnius and Kaišiadoriai poultry farms and subsidiaries form a group of one of the largest, most modern and economically strongest companies, which has been operating successfully for almost three decades, covering the entire production chain “from field to table”, ensuring self-sufficiency traceability and quality of the products produced. The group of companies is engaged in flour and flour products, instant products, crop production, compound feed and premixes, veterinary pharmacy, trade in raw materials, extruded products and pest control and hygiene products.

AB Linas Agro Group together with the managed companies jointly form the group of companies established in 1991, which operates in Lithuania, Latvia, Estonia and Ukraine. The Group companies produce, prepare and sell agricultural raw materials and food products, supply goods and services to farmers – the Group is one of the largest Lithuanian and Latvian grain exporters, a large milk producer, the largest poultry producer in Latvia and one of the leaders in supplying goods to farmers in Lithuania.

COBALT prepared transaction documents, represented the client in negotiations, provided consultations on all issues related to the transaction. The project team consisted of the Managing partner Dr Irmantas Norkus, partner Rasa Zaščiurinskaitė, partner Rokas Daugėla, senior associate Justinas Šileika, and associate Milda Vaznelytė.