Liviko acquires L.I.O.N & Ko, aims to become nr 1 alcohol producer and distributor in the Baltics

16.10.2007

L.I.O.N & Ko. Liviko CEO Janek Kalvi told journalists that the company aims to surpass Latvia’s leading alcoholic beverages producer Latvijas Balzams and become the largest alcohol producer and distributor in the Baltics. Kalvi indicated that there are plans to expand the companies’ product range by including imported beverages and broadening the assortment of domestically produced alcohol, which will create more advantageous conditions for purchases. Thus, the growing volumes will boost the company’s competitiveness in all three Baltic States.

“Negotiations were very serious; however, we are really glad that we could make this deal. Liviko is economically very powerful, and is a company with old traditions. We are sure that we are handing over our business, which was launched 15 years ago with excellent employees, into good hands,” said Igors Jevmenovs, former chairman of L.I.O.N & Ko board.

Although the parties have agreed not to disclose the value of the deal, they indicated that the price matched L.I.O.N. & Ko’s status of market leader.

According to L.I.O.N. & Ko, the company is one of the largest importers and wholesalers of alcoholic beverages in Latvia. The company has Estonian subsidiary L.I.O.N. Est and Lithuanian subsidiary L.I.O.N. Gerimai. The previous owners of L.I.O.N. & Ko were Gild Arbitrage (33.33%) and Latvian businessmen Igors Jevmenovs (56.6%) and Aleksandrs Bondarevs (10.07%). The company’s share capital is EUR 954,000.

L.I.O.N. & Ko imports alcohol from Australia, South Africa, Chile, France and other countries worldwide, and represents brands including Nemiroff, Freixenet, and Cinzano.

Liviko, established in 1898, is Estonia’s leading alcohol producer and importer, commanding about 60 percent of that country’s market of strong alcoholic beverages. Its sole owner is the Estonian holding group NG Investeeringud. Liviko’s best-known brands include Vana Tallinn and Viru Valge; it imports other brands such as Freixenet, Tullamore, Carmen, and Carolans. Liviko is rapidly expanding into the fields of import and distribution and plans in near future to invest in the construction of a new factory.