September 13, 2018

The UK unit of Saudi Agricultural and Livestock Investment Company (SALIC) has agreed to acquire Ukrainian farming company Mriya for an undisclosed amount. Included in the transaction are Mriya’s Ukrainian farmland, infrastructure facilities, machinery, and land-lease agreements. All told, SALIC will gain control of 150,000 hectares of farmland in central and western Ukraine, four grain elevators, two processing plants, a potato storage facility, and equipment.

“SALIC’s decision to buy Mriya Agro Holding is an extremely important event and demonstrates the willingness of foreign investors to invest money in Ukraine, dramatic changes in the investment climate and investors’ attitude towards our state,” said Ukrainian President Petro Poroshenko at the ceremonial signing of the deal contract between SALIC and Mriya.

Poroshenko went on to note that although the deal is the largest in history for Ukraine’s agriculture sector, the deal does not include the outright sale of farmland, but rather is an investment in the country through assets.

“This contract does not involve the purchase of Ukrainian land,” said Poroshenko. “It involves the purchase of Ukrainian assets, raising the level of investment in the Ukrainian agricultural sector and raising the level of technologies that are now coming to Ukraine.”

“SALIC UK’s investment in Mriya is one of the largest investments in Ukrainian agriculture and the economy of Ukraine as a whole over the past few years,” said Oleksiy Pavlenko, Minister of Agrarian Policy and Food of Ukraine 2014-2016 and chairman of the board of directors of Mriya Farming PLC. “Current transaction gives a strong positive signal and will have significant positive effect on investment interest to the whole agrarian sector of Ukraine.”

On completion of the deal, SALIC plans to consolidate its agricultural holdings in the country, and to incorporate the Mriya assets with Continental Farmers Group (CFG), its existing farming business in the country, which operates 45,000 hectares of farmland in Lviv and Ternopil Oblast.

Founded by Laird in 2006, CFG was acquired in 2013 by United Farmers Holdings, a consortium consisting of three Saudi partners: Almarai Dairy Company, SALIC, and Saudi Grains and Fodder Holding, for $80.2 million.

“Over the next two years, we plan to significantly invest into new equipment, infrastructure, agricultural technology and land bank consolidation as well as work closely with the local management to build the combined Mriya and CFG operations into a World Class farming operation,” said Mark Laird, CEO of CFG.

“Today’s acquisition of Mriya fits very well into SALIC UK’s investment criteria and much needed post acquisition investment will secure the long-term profitability of this excellent asset,” said Khaled Alaboodi, Chairman of SALIC UK.

“Our new shareholder is going to invest in the company’s successful development, providing proven expertise and the highest standards of corporate governance,” said Simon Cherniavsky, CEO of Mriya. “At the same time this transaction allows Mriya to provide a stable and long-term future for employees and honor all of its obligations to partners, landowners, and local communities.”

-Lynda Kiernan