October 11, 2011

UkrLandFarming acquires Avangard

UkrLandFarming, Ukrania's agricultural holding, has acquired Avangard, the largest Ukrainian producer of shell eggs and egg products, announced Oleg Bakhmatyuk, owner of UkrLandFarming.

Bakhmatyuk also owned 77.49% of Avangard, and the said merger of the agricultural holdings will create a vertically-integrated company.

Bakhmatyuk noted that for further development in the coming 2 to 3 years, UkrLandFarming requires capital investment of approximately US$700millin.

To date, the company is considering various options for funding: beginning from attracting a strategic investor before holding the IPO on the London and Warsaw stock exchanges.

The company owner said that he continues actively negotiating with investment funds in the Middle East and Asia, particularly China. At the same time, he said that the current situation on the markets prevents attracting investment on favourable terms.

The combined agricultural holding of Bakhmatyuk became the owner of the largest land bank in Ukraine with almost 500,000 hectares, 65,000 head of cattle, and 24million chickens.

The company owns 18 meat processing plants, two plants for processing of leather, six seed milling plants, six sugar factories, three elevators with storage capacity of 645,000 tonnes, four silos and 110 flour-storages.

The company also operates 19 poultry farms, three sow farms, nine farms for cattle rearing, six feed milling plants, three storehouses of long-term egg storage, egg processing plants and Imperovo Foods.

In 2010, the share of UkrLandFarming and Avangard covered approximately 14.3% of beef market in Ukraine, 3% of the total Ukrainian grain production, 8.6% of the Ukrainian sugar production, 12.9% of leather production and 26% of egg production.