KMZ Industries and Variant Agro Build announced merger

KMZ Industries and Variant Agro Build signed an agreement to merge the elevator arm of LLC Variant Agro Build with PJSC Karlivskyi Machine-Building Plant, reports with reference to the company's statement.

The cost of the transaction was not disclosed. Completion of the merger process is planned by the end of 2021.

The deal provides for the transfer of all elevator assets of Variant Agro Build to KMZ Industries. The combined company will operate on behalf of PJSC Karlivskyi Machine-Building Plant, 80% of which will be owned by Dragon Capital (owner of 100% of KMZ Industries before the merger) and 20% by the Shufani family (controlled 100% of Variant Agro Build before the merger). The combined capacity of the new company will allow it to produce equipment for 2 mln t of storage per year, and total sales of the two businesses could reach UAH 1 bln in 2021.

Andrii Nosok

Managing Director, Private Equity at Dragon Capital

“This is a combination of the best teams and products on the market. As a result of this merger of market leaders, the combined company will become the largest Ukrainian manufacturer in terms of volume and production capabilities, technological expertise and product range. We expect that this agreement will allow us to fully realize the positive synergy effect of the merger, where 1+1 equals more than 2. The benefits of this solution will be felt and appreciated by customers, suppliers, and partners of our companies.”

From left to right: Daniil Shufani, co-owner and CEO of Variant Agro Build, Said Shufani, founder of Variant Agro Build, Tomáš Fiala, CEO and founder of Dragon Capital, Andrii Nosok, Managing Director, Private Equity at Dragon Capital

Daniil Shufani

Co-owner of Variant Agro Build

“The Ukrainian elevator market has received a strong impetus for further development, and farmers will have more modern and high-quality domestic equipment. As a result of combining the production experience and expertise of both companies, our customers will be able to get the most advanced solutions from one source and with the best customer service. We see great opportunities in joining forces with KMZ Industries and we are very optimistic about developing the joint business.”


KMZ Industries (PJSC "Karlivskyi Machine-Building Plant") 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 (LLC "Variant Agro Bud") is part of a Ukrainian production group of eleven 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.

Dragon Capital is one of the largest groups of companies in Ukraine that works in the field of direct investments and financial services, providing a full range of investment banking and brokerage services for corporate and private clients. The company was founded in 2000 and has decades of successful track record of private equity investments in Ukraine.

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