Ukraine's Kernel completes Russkie Masla acquisition
KYIV. Sept 21 (Interfax) - Kernel Group, one of the major operators on Ukraine's sunflower oil market and a grain exporter, completed the acquisition of Russian oils company Russkie Masla on September 19, Kernel said in a statement.
The Russian company owns three oil extraction plants in the Krasnodar and Stavropol territories with the capacity to process 400,000 tonnes of sunflower seeds annually.
Kernel reported that Russkie Masla had been valued at $60 million, of which around $15 million would be paid in cash after preliminary conditions have been met.
Russkie Masla includes the Nevinnomysskiy Oil Extraction Plant and Georgievskiy Oil Extraction Plant in Stavropol territory and Ust-Labinskiy Oil Extraction Plant, the company website says. A new refining division was built at the Nevinnomysskiy plant in November 2009, which increased capacity to 140,000 tonnes per year (85% of the oil produced at the company).
Kernel says its new company has the capacity to refine and bottle 100,000 tonnes per year.
Russkie Masla sells bottled sunflower oil and packaged cereals under the Rus, Zlatitsa, Sila Solntsa, Povar Pyotr Povar Pavel brand names.
Kernel Group is a vertically integrated national company that has operated on Ukraine's agriculture market from 1994. It produces sunflower oil, distributes bottled oil inside Ukraine, exports oil and grain, and provides grain and oil crop storage in elevators.