| On January 22, 2018 AUGA group, AB signed the share sale and purchase agreement to acquire 100% share capital of UAB Arginta Engineering for EUR 6.4 million. UAB Arginta Engineering specializes in the design and production of customized metal constructions: prototype equipment, transformer components, conveyer and lifting equipment, machinery for paper processing, energy production, agriculture and other industries. The company’s main customers are multinational engineering companies abroad; 98% of its production is exported. The revenue of UAB Arginta Engineering was EUR 12.5 million and EBITDA was EUR 0.7 million, according to the 2017 unaudited financial statement. Net financial debt was EUR 0.7 million on December 31, 2017. The company employs 170 people. “Due to the expansion of AUGA group, AB activities and the growth of organic food markets, we anticipate further demand for technologies and effective solutions for sustainable food production. We consider Arginta Engineering to be one of the most advanced engineering companies in Lithuania. By acquiring its shares and combining the activities of both companies, we see a great opportunity to strengthen AUGA group’s competencies in this technology sector”, - states Kestutis Juscius, Chairman of the Board of AUGA group, in regard to the motives of the acquisition. According to K. Juscius, the acquired production base, know-how, experience and team of professionals will allow AUGA group, AB to develop innovative equipment, machinery and unique technological solutions for a clean and sustainable food supply chain. Gintautas Kvietkauskas, co-owner and director of UAB Arginta Group, parent company of UAB Arginta Engineering, admitted that in making the decision to sell the company, one of the main conditions for the acquiring party, was to ensure the continuity of company’s main business. “After becoming a part of AUGA group, Arginta Engineering will not change its strategic business direction and will continue to work with big international customers, providing them with complex, non-standard engineering design and production services. In addition, its scope of operations will expand with the projects being developed by AUGA group. By selling shares of Arginta Engineering to AUGA group, we are certain of the synergy of operations and sustainability of value, created by both companies”, - states G. Kvietkauskas. Since 2014, AUGA group, AB has already invested more than EUR 15 million into the development of organic farming and organic food production. The group is currently one of the largest, vertically-integrated organic food companies in Europe. AUGA group, AB is developing a sustainable farming model, based on new technologies, specializing in crops, dairy cows, poultry and mushroom farming. Using proprietary and contract manufacturing, the company produces a wide range of organic food products for the end consumer as well as organic commodities. In the future, AUGA group, AB seeks to operate not only in organic farming and the organic food production business, but also to develop and provide technological solutions for organic and sustainable food supply chain. The acquisition should close upon receiving the necessary approval from the Competition Council of the Republic of Lithuania. More information: General Manager Linas Bulzgys +370 5 233 5340 | |
