Forming the market leader by merging two competitors in agriculture

Client

Linas Agro (part of Akola Group)

The background:

Linas Agro is one of the leading suppliers of agricultural seeds, fertilisers, and plant protection products. It is one of the largest exporters of Baltic grain, and it owns a modern grain storage network in the region. 

After acquiring one of the main competitors (KGG), the company’s top management faced a challenge integrating both businesses effectively.

The major challenge came from the complexity of incorporating overlapping businesses. On the one hand, both companies were direct competitors of similar size, but on the other, their sales strategies and organisational setup were different. To achieve this goal, the company approached us.

The essence of the project:

After the acquisition, Linas Agro became a clear market leader in Lithuania and one of the leading players in the Baltics. Our primary goal was to preserve the collective value of both companies in terms of market share, profit and key personnel while integrating two businesses into one company. 

The merger lasted an entire year. During that time, critical decisions were required for the transitional phase and the envisioned future.

The integration covered the unification of the product portfolio, restructuring the sales organisation from competitors to one team, integrating grain storage facility network and logistics, migrating to one set of IT systems, and moving all employees to the new organisational structure and compensation system. We helped our client address several fundamental questions about structuring and managing the integration process.

In the preparation phase, we worked closely with our client’s top management team to define business objectives and structure the integration approach. We conducted over 20 interviews with key stakeholders from both organisations and formed workstreams to kickstart the work of a broader organisation of more than 50 top and mid-managers. 

During the planning phase, our team continued to work with our client’s top management and integration workstreams using the groundwork laid during the preparation phase. We created a complete integration plan to identify synergies and potential risk areas, define governance structures, and design new organisational structures and processes. We carefully aligned each workstream solution with the company’s vision and integration objectives. As a result, we proposed detailed end-state and transition solutions and a plan for how to reach them.

In the implementation phase, we ensured that the integration plan was executed promptly and effectively, with proactive management of any emergent risks. Regular meetings were held with the workstreams and our client’s top management, maintaining open lines of communication and support to evolving needs. This structured approach allowed us to guide our client through the challenging merger process, fostering seamless integration and sustainable success.

Services provided:

  • Organising and overseeing how different parts of a business come together, from setting goals to creating new operating methods to making those changes happen.
  • Helping make decisions about the overall strategy and business approach.
  • Establishing financial and organisational goals.
  • Assisting in creating a new organisational structure during the transition period and end-state.
  • Supporting functional and cross-functional workstreams to develop the company’s business model organisational processes in detail and preparing implementation plans.
  • Developing an integrated implementation roadmap and detailed plan
  • Overseeing implementation in the PMO role until integration was completed.

Project result:

Our strategic guidance ensured the smooth integration of two industry giants within the planned timeline. 

The companies weathered the complexities of integration and demonstrated robust financial performance during the process.