“$120 million is too much”: Abromavičius comments on details of Agro-Region sale
During the sale of Agro-Region to Enselco, an agricultural holding of Andriy Verevskyi, the parties did not revise the terms of the deal or reduce the price due to war-related risks. This was stated by Aivaras Abromavičius, former majority owner of Agro-Region, during a Business Breakfast on the Forbes Ukraine YouTube channel.
“When we structured the terms, we did not focus on shelling or occupied territories. From Kernel’s side, it was a pleasant aspect: we were not sitting every week watching Russian troop advances in a particular region and saying, ‘let’s lower the price a bit,’” he noted.
Commenting on Agro-Region’s valuation prior to the full-scale war, Abromavičius said the asset would have been worth “more or less the same money.” He added that the pricing of Ukrainian agricultural assets is highly predictable. Few market players rely on EBITDA; valuations are largely based on assets — leasehold rights, elevators, machinery, and work in progress, the businessman explained.
Abromavičius declined to disclose the exact deal amount, stating that $120 million is “an inaccurate figure” and “too much.”
Earlier, Latifundist.com estimated the deal value at $100–110 million.
He also believes that Kernel’s acquisition of Agro-Region reflects a broader market trend: companies with large processing capacities are seeking assets with substantial land banks.
“We have already built processing capacities far exceeding the available product on the market. Competition will be very intense, margins will remain thin. At the same time, new processing facilities are still being constructed. In addition, many non-core investors with significant capital have entered the sector — everyone wants to build a ‘million-ton plant,’” he said.
