Linas Agro Group acquires Grybai LT: new opportunities and development

Linas Agro Group announces a new step in its development path – the acquisition of a part of Auga business, specifically the soup and canned products production division of the cooperative company Grybai LT, by Kauno grūdai controlled by AB Linas Agro Group.

Grybai LT was established in 2012 with the aim of processing mushrooms grown in Lithuania. Since 2016, in a modern robotic factory, Grybai LT started producing ready-to-eat products such as soups and canned vegetables.

The AUGA brand is not being purchased. Only the production base, production recipes, and contracts with buyers are being acquired.

By investing 4.4 million euros over the next 5-6 years, Kauno grūdai plans to expand Grybai LT production capacity from the current 3,000 tons per year to 11,000 tons. Additionally, the goal is to increase the annual EBITDA of Grybai LT from 1.3 million euros to 6 million euros.

This transaction is an important step in the activities of Linas Agro Group, allowing for an expansion of the product range with organic food products and the opening of new markets for other products manufactured by Kauno Grūdai.

COBALT Managing Partner Dr Irmantas Norkus and Senior Associate Žygintas Voronavičius advised Linas Agro Group throughout the entire transaction. They prepared the transaction documents and provided advice on other related matters.