Aequo advised Dragon Capital, a leading private equity house operating in Ukraine, on the merger of its portfolio company KMZ Industries with the elevator arm of Variant Agro Build.
The combined capacity of the new company will allow it to produce equipment for 2 million tons of storage per year, and total sales of the two businesses could reach UAH 1 bn in 2021.
KMZ Industries is a leading supplier of integrated solutions for the storage and processing of grain. The company is the largest manufacturer of elevator equipment in Ukraine and produces a full range of elevator equipment (silos, grain dryers, transport equipment and separators). The company has successfully sold more than 5,000 product items. Its production facilities are located in Karlivka, Poltava region.
Variant Agro Build is part of a Ukrainian production group of ten companies engaged in metal processing and manufacture of equipment for its processing. The elevator arm of the company occupies one of the leading market positions in Ukraine. The head office and production facilities are located in Kharkiv.
Anna Babych, M&A partner at Aequo, who led the project, comments: “That’s a prominent consolidation that confirms that agriculture remains one of the hottest industries on Ukrainian M&A market. We are proud to support Dragon Capital in this outstanding deal.”