Linas Agro is acquiring 100% of the share capital of Elagro Trade

Linas Agro SIA, an indirectly controlled company of the agricultural and food production company AB Akola Group, has agreed on the acquisition of a major Latvian grain exporter, acquiring 100% of the shares of Elagro Trade SIA for a preliminary amount of EUR 22 million.

The transaction is subject to clearance by the Latvian Competition Council and is expected to be completed in 2024 or early 2025.

Elagro Trade has been operating since 2010 and is one of Latvia’s leading grain, seed, crop protection and fertilizer businesses, with a market share of more than 15% of the total Latvian grain market.

Mažvydas Šileika, CFO & Board Member at Akola Group, says: “The target company is a strong grain trader, supplier of goods to farmers and a competitor of Linas Agro in Latvia. The acquisition will increase the efficiency of the services provided to Latvian farmers and will help the company to compete more actively in the grain export business and improve the infrastructure in Latvia.”

The acquisition of Elagro Trade is expected to attract over 2,100 new customers, strengthen the infrastructure and capacity to serve farmers, and the seed factory that is being built in Latvia would also be part of this infrastructure.

The COBALT team is led by Partner Guntars Zīle and Managing Partner Irmantas Norkus, and includes Partner Uģis Zeltiņš, Specialist Counsel Sandra Juozaitienė, Senior Associates Elīna Ločmele, Diāna Zepa, Inga Tenisa, Ivo Maskalāns, Agnese Gerharde and Associates Vadims Zvicevičs, Maira Pužule and Toms Dreika.

AB Akola Group announcement.