PPF Group N.V. announced Wednesday that through its subsidiary, Bavella B.V, it has acquired 100 per cent of Russian agricultural holding company CJSC RAV Agro-Pro, based in Voronezh, Russia.
International investment fund, RP Capital, contributed to the transaction as co-investor with a 20 per cent stake in Bavella B.V. The price, as well as further details of the transaction have not been disclosed, following the agreement between the two parties. The transaction has already been approved by the appropriate Russian regulators.
RAV Agro-Pro is being acquired from major agricultural businesses within the so-called Chernozem areas of Central and Southern Russia. Its portfolio in arable land consists of 164,500 hectars in Voronezh, Oryol, Penza, Rostov and Kursk regions.
The company also owns significant production capacities in Livestock, thus creating a basis for a vertical integration of its agricultural output with a huge potential for future growth.
In line with the Group’s strategy of industry diversification, PPF is now entering into a new, promising segment that offers potential growth. The goal is to increase the efficiency of the business both by know-how transfer thanks to international management team with experience in similar sized markets, and through a significant improvement of all processes.
Agriculture is a traditional segment of the Russian economy and its development plays an important role in increasing the country’s living standards. This investment brings yet more evidence of PPF’s position as one of the significant foreign investors in Russia‘s real economy.
PPF is one of the largest investment and finance groups in Central and Eastern Europe. With approximately €12 billion of assets under management, PPF’s business investments range from banking and insurance to real estate to energy and metal mining to retail. PPF’s reach spans from Central and Eastern Europe to Russia and across Asia.
The company has embarked on expansion strategy through acquisitions. PFF aims to achieve superior investment returns through its values of responsibility, determination and successful execution. The 20-year history of PPF Group is based on the discipline, innovation and professionalism of a team led by the Czech founder and majority shareholder of PPF Group N.V., Petr Kellner.
PPF Group today owns companies in Central and Eastern Europe, Russia and across Asia, employing tens of thousands of people. The company aims to develop and encourage innovation, entrepreneurship, creativity, financial discipline, and a global perspective.