Latvian company „Linas Agro“, indirectly controlled by Latvian agriculture, food production and trade company „Akola group“, has acquired Latvian grain exporter „Elagro Trade“. It was sold by the Latvian company „Agrolats Holding“ and three natural persons. 

„Akola group“ announced on Tuesday that it has completed a EUR 25.5 million transaction on the Vilnius Stock Exchange via the „Nasdaq“, by which it has taken over 100 per cent of the shares of Latvia's „Elagro Trade“. 

According to the company, the acquisition price increased by 16% or EUR 3.5 million due to higher than expected net working capital of „Elagro Trade“ on the closing date. The EUR 14 million loan to Lithuanian company „Linas Agro“ was provided by SEB Bank.

„This acquisition should give us the same leadership in Latvian grain exports that we have in Lithuania. The capacity of the grain storage facilities alone will more than triple to 161,000 tonnes," said Mažvydas Šileika, CFO of Akola group in a statement.

According to him, the plan for the next year is to focus on merging the businesses – it is hoped to retain all „Elagro Trade“ customers and attract new ones.

„We estimate that once the integration process is completed, the acquisition will bring financial benefits within five years, if not sooner“, – Jonas Bakšys, member of the board of directors of „Akola group“ and head of „Linas Agro“ in Lithuania, said in a statement.

SEB Bank's Head of Business Banking Tadas Jonušauskas said the acquisition of a competitor in Latvia will also help build a strong economy in the Baltic region.

„(„ Elagro Trade“ – BNS) The acquisition will strengthen the position of the local company „Linas Agro“ both in grain procurement in the region and in cooperation with farmers in the supply of fertilizers, crop protection products, seeds, “ T. Jonušauskas said in a statement on the deal.

„Elagro Trade“ has a market share of over 15% in Latvia's grain market, last year exported €103 million worth of grain, and employs 73 people.

Business „Elagro Trade“ generated earnings before interest, taxes, depreciation and amortisation (EBITDA) of €2.1 million on revenues of €154 million.

„Elagro Trade“ operates grain elevators in Elya, Yekkabpili and Skulte, as well as warehouses for seeds, fertilisers and plant protection products and liquid fertiliser storage facilities in Elya and Yekkabpili.

„Akola group“ generated revenues of €1.506 billion in FY2023–2024–25 percent of the total revenues of €1.506 billion in FY2023–2024. Its consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) was €73.5 million, up 18%, while net profit rose 74% to €24.9 million. 

„Akola group“ operates the largest agri-food group in the Baltics, with 69 subsidiaries and 2 associates. The group currently employs over 5,000 people.