A Ukrainian Diversified Agricultural Corporation: Mfg Ag Equipment, Spare Parts, Pork Production

Horizon Capital, Kyiv, Ukraine, Tue, June 1, 2010
KYIV - Horizon Capital, a leading regional private equity fund manager, announced today that it acquired a stake in Ukrainian diversified agricultural corporation Agro-Soyuz for $40 million. This is Horizon Capital’s first investment since the onset of the financial crisis in late 2008 and second investment from its 2008 $390 million Emerging Europe Growth Fund II (EEGF II). 

This capital infusion will enable Agro-Soyuz to expand its business activities, in particular in the pork production segment, where it boasts highly efficient, vertically integrated facilities. In addition, the investment will allow Agro-Soyuz to restructure some debt, further strengthening the balance sheet. 
Agro-Soyuz Corporation operates four agricultural lines of business:

          [1]  Supplying spare parts and service for agricultural equipment via its 77 centers nationwide (it currently commands a 20% market share);
          [2]  Manufacturing agricultural equipment, including sole production no-till seeders and cultivators in Ukraine;
          [3]  Farming 11 thousand hectares with a focus on technologically advanced and vertically integrated pork production; and
          [4]  Turnkey business solutions and technologies for farming, pork production and ostrich breeding.

Natalie Jaresko, Co-Managing Partner of Horizon Capital, commented: “Agro-Soyuz stands out as a leader among Ukrainian agricultural enterprises as a result of its commitment to the advancement of state-of-the-art agricultural technologies and farming techniques in the Ukrainian market.   We are pleased to back our newest Partners and look forward to supporting the Company in helping Ukraine realize the full potential of its agricultural sector.”

Serhiy Prokayev, founder and Director of Agro-Soyuz, said: “Our partnership with Horizon Capital is a key to our expansion and will help us to accelerate our growth further as the nation’s leading agricultural supplier and manufacturer. It will also enable us to scale our operations in terms of management expertise and global best practices making us the first choice company for our clients and customers.”
Agro-Soyuz Corporation (www.agrosoyuz.ua)  started operating in 1991 by selling spare parts for agricultural machinery and vehicles. Today Agro-Soyuz is a fast-growing company, which offers integrated solutions for efficient agricultural business, resource-saving machinery, trucks and agricultural machinery of leading manufacturers, qualified service and high-quality spare parts.

Horizon Capital (www.horizoncapital.com.ua) is a private equity fund manager that originates and manages investments in mid-cap companies with outstanding growth and profit potential in Ukraine, Belarus and the region. Currently, Horizon Capital manages three funds, Emerging Europe Growth Fund II (EEGF II), Emerging Europe Growth Fund (EEGF) and Western NIS Enterprise Fund (WNISEF), with over $600 million under management.

FOOTNOTE:  Horizon Capital is a member of the U.S.-Ukraine Business Council (USUBC), Washington, D.C., www.usubc.org.