Ellex Raidla, Ellex Valiunas, and Ellex Klavins have advised Kesko on the sale of a 45% interest in its Baltic machinery trade subsidiaries to DAVA Agravis Machinery Holding A/S, a subsidiary of Denmark's Agro group. Sorainen advised the buyer on its acquisition in Lithuania.
The debt free price of the shares was approximately EUR 21 million, which was paid in cash in connection with the closure of the transaction. An agreement was also made on options to expand DAVA Agravis' ownership to include the whole share capital of the Baltic machinery trade companies and Danish Agro group's ownership to include Konekesko's agricultural machinery business in Finland.
Konekesko's Baltic subsidiaries engage in the import, selling, and servicing of agricultural, forest, and construction machinery. Key brands represented by the companies include Claas tractors, combines, and grassland machinery, Ponsse forest machinery, Kobelco excavators, and Kubota mini excavators. In 2016, the pro forma net sales of the Baltic functions were EUR 129 million and operating profit was approximately EUR 5 million.
The Ellex Raidla team was led by Partner Raino Paron and included Senior Associate Martin Maesalu and Associate Sven Bottcher.
The Sorainen team was led by Partner Algirdas Peksys and Senior Associate Jonas Kiauleikis and included Senior Associate Vaiva Masidlauskiene, Associates Lina Stropute and Lukas Vaisvila. Partner Daivis Svirinas and Senior Associate Monika Malisauskaite advised the client on merger clearance aspects.