Steppe acquired a sugar trader
11 December 2018
Steppe agroholding, an agricultural subsidiary of AFK Sistema Corporation, purchased Investoprom-Opt, the largest Russian sugar trader based in the Rostov region. The transaction value was not disclosed. The approximate net asset value of Investoprom-Opt amounts to RUB 63.2 million (about $945,000).
Investoprom-Opt is engaged in sugar and cereal trading. It operates its own sugar packaging line with a capacity of over 60,000 tonnes per year and a logistics complex with a capacity of over 100,000 tonnes of sugar per year. The annual sales exceed 150,000 tonnes of sugar. The company’s revenue in 2017 amounted to RUB 5.5 billion ($82 million) and the net profit was RUB 2 million ($ 30,000). However, the company reported the accounts payable of RUB 407 million ($6 million) and a negative cash flow of RUB 744,000 ($11,000) for the same period.
The acquisition of Investoprom-Opt will allow Steppe agroholding to form a vertically integrated structure and to increase the sales of sugar and grocery products to more than 250,000 tonnes per year.