Agriculture, Baltic States – CIS, Lithuania, Markets and Companies, Mergers and take-overs

Since July 1, 2010, Linas Agro Group controls 63.38% stake of SJ-SC UKRAGRO NPK, while together with the main stockholder of Linas Agro Group, AB – the Danish company Akola ApS, it controls 100% stake of CJ-SC UKRAGRO NPK.

The acquisition of the block stake of Ukrainian producer and trader of fertilisers will enable Linas Agro Group to grow in fertiliser sales and strengthen company's positions in the Ukraine. The company is planning not only to strengthen trade in fertilisers but also to expand grain and rapeseed export from Ukraine through the Baltic and the Black Sea ports, writes LETA/ELTA.

Founded in Kiev, a capital city of Ukraine, in 2002, the company CJ-SC UKRAGRO NPK is engaged in production of blended NPK fertilisers as well as wholesale and retail trade of various fertilisers. Thirteen fertiliser distribution warehouses run by CJ-SC UKRAGRO NPK are located in the most important Ukraine's agricultural regions and in total can store about 50 thousand tons of fertilisers. NPK fertilizers blends are being produced in production units located in west, central and east Ukraine. The company has 183 employees.

In 2009 the company sold 152 thousand tons of fertilisers, while in 2010 it plans to sell 200 thousand tons, i. e. 32% more as compared to the last year. The turnover of the company was 204 million litas in 2008, 147 million litas in 2009, the forecast for 2010 is 180 million litas.

The company's trade results were heavily influenced by the worldwide crisis in 2009. However, the company has finished the year profitably. The trade of fertilisers is recovering in 2010, and CJ-SC UKRAGRO NPK is expected to show better results. The average company's EBITDA was 12.4 million litas in 2007-2009.

After consolidation of CJ-SC UKRAGRO NPK into Linas Agro Group, AB financial report, the group's turnover should grow by 173 million litas and EBITDA – by 9.5 million litas in the financial year of 2010-2011.