Information has emerged on the market regarding a potential investor search or sale of Vynnyky Tobacco Factory (LLC “National Manufacturer”). According to several Ukrainian media outlets citing journalist Yevhen Plynskyi, the asset’s potential valuation could be around $170 million, with annual revenue estimated at approximately $100 million.
There have been no official statements from the company or its owners confirming the launch of a sale process.
According to publicly available registry data, the official owner of LLC “National Manufacturer” is Ruslan Mykhailovych Bytskyi, while the company’s director is Rostyslav Vasylovych Pavliv. Until the end of 2022, the company was headed by businessman Hryhoriy Kozlovskyi, who had previously been publicly associated with the enterprise.
Media reports also note that members of Kozlovskyi’s family own the real estate where the production facilities are located. However, there is no official confirmation of Kozlovskyi’s current involvement in the company’s management.
Financial Parameters: Is a $170 Million Valuation Realistic?
If based on the reported annual revenue of $100 million, a $170 million valuation implies a revenue multiple of approximately 1.5–2x.
For a tobacco business, this could be viewed as:
- A moderate valuation in the case of stable, fully compliant cash flow;
- Or a discount if regulatory and reputational risks are factored in.
International practice suggests that tobacco manufacturers are typically valued with consideration for:
- Stability of distribution channels;
- Regulatory environment;
- Tax risks;
- Export exposure;
- Potential legal liabilities.
The Illicit Market Factor
The issue of the share of illicit cigarette trade in Ukraine has been widely discussed in the public domain. According to industry research (including KPMG and European Commission data), the share of illicit trade in Ukraine increased significantly during 2023–2025.
At the same time, publicly available sources do not contain officially confirmed law enforcement decisions linking specific manufacturers to illegal activities.
Any claims regarding “monopoly” status or “informal agreements” remain at the level of journalistic assessments and are not supported by court rulings.
For a potential investor, this implies heightened compliance risk and the need for comprehensive legal due diligence.
Why Owners May Be Considering a Sale
Several possible scenarios are being discussed in the market:
Regulatory Pressure
Ukraine is undergoing institutional reforms, including restructuring of the Bureau of Economic Security, customs reform, and increased activity by anti-corruption bodies.
Stricter oversight could alter industry profitability.
Market Consolidation
European and regional manufacturers may view Ukrainian assets as an opportunity to:
- Expand production capacity;
- Gain export capabilities;
- Diversify manufacturing geography.
Production Relocation
A potential scenario includes a sale followed by relocation of production to EU countries such as Poland or Hungary, which could reduce regulatory and customs risks.
Will an Investor Be Found?
According to media reports, potential buyers are allegedly seeking financing from European financial institutions, which may indicate the complexity of structuring such a transaction.
Possible buyer profiles could include:
- Regional tobacco holdings;
- Private equity funds with high risk tolerance;
- Strategic investors from Central Europe.
However, for major international tobacco corporations, the deal may appear too risky from a compliance and ESG perspective.
At present, information regarding the potential sale of Vynnyky Tobacco Factory is based on media reports and has not been confirmed by official company statements.
A $170 million valuation may be potentially realistic under conditions of stable cash flow, though the transaction could be influenced by regulatory changes in Ukraine, illicit market risks, availability of financing, and the broader geopolitical context.
If negotiations are indeed underway, the deal could become one of the most notable M&A transactions in Ukraine’s tobacco sector in recent years.
Vynnyky Tobacco Factory (VTF, LLC “National Manufacturer”), located in Vynnyky, Lviv region, is one of the largest tobacco product manufacturers in Ukraine, accounting for more than 10% of the domestic market. Founded in 1805, it produces brands such as Marvel, Compliment, and Strong. The factory has been associated with businessman Hryhoriy Kozlovskyi and has repeatedly appeared in investigations related to illicit trade.
