Venture capital fund Practica Venture Capital managed by Practica Capital signed the deal regarding 1.5 million EUR investment in East West Agro (EWA) - one of the leading agriculture machinery and spare parts distributors in the Baltics. The total amount of the long term funding agreement, together with Swedbank's financing is €6 million.
Practica Capital and Swedbank's investment enabled EWA to become an authorised dealer of US agricultural machinery brand Massey Ferguson, which the company expects will boost its growth. CEO Danas Šidlauskas said in a statement that the capital injection has solved any funding problems the company faces in the next few years, provided it does not materially exceed its projected growth.
One of Practica Capital partners, Petras Mičiūnas, stated: “Opportunity to invest in East West Agro’ seemed attractive for us, because of many factors: Massey Ferguson is a world known brand; company executives are young and ambitious, and they’ve already managed to achieve great results in Lithuania’s agriculture market; all the products that company offers, are well-balanced and very attractive for majority of agriculture machinery buyers. To add, the history and traditions of agriculture in Lithuania, sets great foundation for company to grow in this market. We expect a long-term successful collaboration with this company.”
Agreement financial advisor – Orion Securities; legal advisor – Cobalt.
East West Agro (EWA) – agriculture machinery professionals, represents many world-known brands in the region such like Massey Ferguson, Dal – Bo, Fella, Sulky and others.
EWA was established in the year of 2006. In 2012 part of company shares were sold to KG Group, as strategic partnership agreement. After 3 years of succesful collaboration, KG Group sold the shares back to EWA founders. In November of 2015, company became exclusive representative of world-known brandname Massey Ferguson (part of AGCO group) in Lithuania. Massey Ferguson is one of the oldest and biggest agrizulture machinery producers in the world. More info:
Practica Capital is a venture capital firm established in 2011 by investment professionals and entrepreneurs who exited of their businesses. The firm manages Practica Seed Capital fund of 8 million EUR and Practica Venture Capital fund of 15,7 million EUR, both established under the JEREMIE initiative, managed by EIF and financed from the EU Structural Funds under 2007-2013 Economic Growth Operational Programme of Lithuania. The funds provide early and later stage financing to Lithuanian SMEs, focusing on innovative businesses with high-growth potential. What is more, Practica Capital manages the business accelerator Startup.lt, which helps young businesses to realise high-growth potential. By the end of March 2016, Practica Capital signed 38 investments of 17.1 million EUR. For more information visit http://practica.lt and http://startup.lt.Back to news