Egis Klimas, a Lithuanian-born US businessman, buys Lukšiai Dairy

The Lithuanian-born US businessman Egis Klimas buys the Lithuanian dairy company Lukšių pieninė from the financially troubled company „Marijampolės pieno konservai“ (MPK), which is being restructured and managed by the loss-making Lukšių pienienė.

This was confirmed to BNS on Thursday by Henrikas Karpavičius, CEO of MPK and one of the shareholders of the company „Karpis“ that manages it. According to him, Klimas took over all the liabilities of Lukšių pieninė about a month ago. He has become the main creditor. Yes, he will acquire the company," Karpavičius told BNS on Thursday.

According to public information, Lithuanian-born US businessman E. Klimas is a well-known professional boxing manager. According to Mr Karpavičius, the deal should be completed in a few weeks. He did not disclose the liabilities assumed or the amount of the transaction on the grounds of confidentiality.

Lukšių pieninė disclosed in its 2024 annual report that its total payables at the end of the year amounted to EUR 15.2 million and EUR 1.82 million to the bank alone. According to the document, the bank sold the latter debt to „Artea“ on 14 February. In addition, the dairy's biggest creditor, MPK, promised not to demand repayment of €10.874 million until the end of the restructuring. 

BNS previously reported that MPK is being bought by Vilkyškių pieninė, owned by Vilvi Group, one of Lithuania's largest dairy processing groups – the deal is yet to be approved by the Competition Council.

G. Bertašius: we had no plans to acquire Lukšių pieninė 

„Vilvi Group“ chairman and shareholder Gintaras Bertašius told BNS that he has never had any plans to acquire Lukšių pieninė, a producer of cheese „Liliputas“ and „Senols“, as he already owns a similar company in Kelme.

„When we were discussing (the acquisition of MPK – BNS), it (Lukšių pieninė – BNS) was not on our agenda“, – BNS quoted G. Bertašius as saying. „Kelmės pienas“ fully satisfies our needs because (Lukšių pieninė – BNS) produces very similar products – largely the same. We would have bought the same plant“, – he added.

G. Bertašius said that Vilkyškių pieninė, along with MPK's debts, had also acquired the creditors' claims of Lukšių pieninė, but these were bought out by E. Klimas. "We did not object to such a transaction taking place," the businessman told BNS.

BNS reported in August that Vilkyškių pieninė and the Klaipėda-based company „Karpis“, the manager of MPK, had concluded negotiations on the acquisition of MPK,  G. Bertašius told BNS at the time that Vilkyškių pieninė had submitted a request to the Competition Council to acquire a 100 percent stake in the Marijampolė-based company. However, Bertašius did not disclose the value of the transaction. 

The Competition Council has not yet publicly announced the receipt of the transaction request. Vilkyškių pieninė acquired the claim to the outstanding liabilities of MPK and its Lukšių pieninė for an undisclosed amount in February from the main creditor „Artea“ bank. At the end of 2024, they amounted to €16 million.

At the time, Lukšių pieninė said in its 2024 financial report that it was continuing to make a loss this year, despite its efforts to maintain production and to continue operations in order to pay its creditors and meet customer orders.