OREANDA-NEWS. May 11, 2012. A subsidiary of AB Linas Agro Group UAB Linas Agro Konsultacijos signed purchase and sale agreement of shares with stakeholders of Labunavos agricultural company on acquisition of 87% of shares of Labunavos agricultural company. The agreements shall come into force if there are no objections from Competition Council, the decision from which is expected in the middle of July. UAB Linas Agro Konsultacijos are planning to spend LTL 21.4 million on the acquisition of shares.

Labunavos agricultural company was established in Kedainiai district in 1992. The company cultivates 2,800 ha of land. The scope of its activities includes dairy and meat production (600 dairy cows and 100 beef cattle), oilseed rape, wheat, barley and corn cultivation. There are 125 employees at the company. In 2011, its turnover totaled LTL 16.3 million, EBITDA (earnings before interest, tax, depreciation and amortization) amounted to LTL 5.2 million and the net profit was LTL 3.7 million. The company has almost 500 ha of its own land and the total assets worth LTL 34.4 million LTL.

“This investment is a continuation of our planned expansion in agricultural production area. Acquisition of agricultural companies is part of our long-term strategy, which includes plans to expand the area of cultivated land up to 20 thousand ha by acquiring most promising agricultural companies. Labunavos agricultural company has big potential because it is  one of the leading agricultural companies in Lithuania, its activities are diversified and its turnover and net profit are growing each year. But the most important thing is that the company’s activities have always been profitable. After acquisition of Labunavos agricultural company the area of cultivated land owned by our Group will exceed 14 thousand ha”, commented Deputy Managing Director of AB Linas Agro Group Andrius Pranckevicius.      

AB Linas Agro Group controls five more agricultural companies in the most yielding Lithuanian areas – Panevezys district Aukstadvario ZUB, Sakiai district Luksiu ZUB, Birzai district Medeikiu ZUB, Sidabravo ZUB and Uzupes ZUB. Their activity covers dairy production, cultivation of grains, oilseed rape and sugar beet.