MHP to acquire poultry slaughtering and processing facility from Lviv-based company

MHP is preparing to acquire a poultry slaughtering and processing facility from the company Agrol, Forbes Ukraine reports. The estimated value of the asset is at least USD 5 million.

According to the publication, in early January, MHP submitted documents to the Antimonopoly Committee of Ukraine seeking approval for the concentration of part of Agrol’s assets and is currently awaiting the regulator’s decision.

“The deal concerns exclusively the acquisition of a slaughtering and poultry processing facility with related assets owned by Agrol and does not provide for the takeover of the company,” MHP’s press service said in response to Forbes Ukraine’s inquiry.

The company also emphasized that the transaction will not affect the competitive balance of the market and will not lead to a strengthening of MHP’s market position.

Under the terms of the deal, MHP will acquire only Agrol’s processing unit. The holding clarified that it is purchasing a stake in a separate legal entity that owns the slaughtering and processing assets. Poultry houses and bird growing operations are not included in the transaction, so Agrol will continue to operate in the market and compete, including with MHP.

“This is an example of a market-based transaction that contributes to the optimization of production processes without a negative impact on the competitive environment: all participants retain and develop their production capacities,” the company stated.

Financial terms of the deal are not disclosed due to confidentiality.

“MHP is acquiring only part of the assets, most likely because the facility meets MHP’s required standards and is located close to its existing operations,” said Oleksii Oleinikov, Managing Partner at InVenture. In his view, the deal may also be part of an internal optimization strategy. MHP did not comment on the reasons for the partial acquisition.

Logistics is also a key factor, adds KSE researcher Pavlo Martyshev. The facilities are more conveniently located for supplies to the EU, primarily Poland. He also noted that livestock production may be more profitable further away from ports due to lower grain prices for feed, and that MHP will gain access to Agrol’s established sales channels.

Agrol, owned by Yuliia Shopska, has been operating since 2000 and runs two poultry farms in Lviv region with a combined capacity of over 3.5 million birds per year. In 2024, the company’s revenue amounted to UAH 1.8 billion. The company also owns its own slaughtering and processing facility in Lviv region equipped with automated poultry cutting and evisceration, packaging, chilling and freezing systems — the asset MHP is reportedly planning to acquire.