Lebedyn Seed Plant agroholding (LNZ-AGRO LLC) has acquired 100% of crop planting business of Shpola-Agro Industry with all infrastructure and machinery in Cherkasy region.
According to a press release of EY, the cost of the deal was $15.9 million for 100% stake with a land bank of around 8,500 ha of leased farmland.
LNZ Group with the acquisition of 100% corporate rights in Shpola-Agro Industry expanded its land bank by 16.7%, to 70,000 ha.
Negotiations to acquire the corporate rights in Shpola-Agro Industry had lasted since November 2017. In April 2018, the Antimonopoly Committee of Ukraine permitted to acquire the stake.
The LNZ Group’s core business is the cultivation and sale of grain, oilseeds and industrial crops; provision of services for primary processing and storage of grain, breeding of dairy cattle, processing of meat and milk, wholesale trade in cereals, production and sale of seeds, planting materials of field crops and plant protection agents. The main asset is Lebedyn Seed Plant.
Shpola-Agro Industry LLC (village Syhnayivka, Shpola district, Cherkasy region) is connected by control relations with business entities that form the ByFrederic Group. The company is engaged in activities for growing wheat, corn, sunflower, growing cattle, growing and selling seeds; activity on providing services of primary processing and storage of grain.
After the concentration the relations of control between Shpola-Agro Industry and the ByFrederic group will be suspended.