Dutch FMO and DCP jointly acquire 16% of shares in Allseeds
Dutch Development bank FMO and DCP jointly acquired a 16% equity stake in Allseeds, providing financing to realize Allseeds ambitious growth strategy which includes the expansion of its processing and transshipment capacities, additional steps of vegetable oil processing and value-added, and the improvement of corporate governance, environment, and social standards. This equity investment should position Allseeds on the path to becoming a leading agriculture commodities processing and transshipment hub in the deepest Ukrainian port Yuzhny, increasing the level of in-country value-add and improving links with the biggest global markets.
Pressconference
The news was announced during a press conference in Yuzhny port on October 10. Jorrit Dingemans (FMO) stated the following: "The Dutch Development bank FMO recognizes the potential of the agricultural sector in Ukraine. Equity Fund DCP introduced us to Allseeds and we very impressed that the company was able to build the new plant from scratch in 7 years. The opportunity for us to become a shareholder was an honor. It fits in our strategy to support the development in Ukraine and also to contribute to 'Feeding the world together'. Ukraine plays an important role in this as food basket of the world. We are looking forward to support Allseeds in their growing strategy."
Jorrit Dingemans added that the whole process took more than a year to finalize and included a due diligence and market research. That Allseeds passed the FMO test might be a step for other (international) partners to also step in. We bring our own expertise but also our network of consultants which is now open for Allseeds. We look forward to welcome others as well.
Allseeds
Allseeds is one of the largest manufacturers and exporters of vegetable oils and meals in Ukraine which owns cutting-edge multi-seeds Oilseed Processing Plant with the capacity of 2,400 MT/day for sunflower seeds (1800 MT/day for rapeseeds or 1500 MT/day for soybeans) in Ukraine ’s deepest-water port Yuzhny. Allseeds also provides services of transshipment of vegetable oils and oilseed meals on its own Terminals in Yuzhny where it can service vessels with deadweight of over 100 000 MT with the draft of up to 14.6 m servicing remote destinations such as China, India, and the Middle East. The company has a reputation of a reliable and highly professional partner on agricultural markets.
FMO
FMO is the Dutch development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a more than 45-year proven track-record of empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With a committed portfolio of EUR 9.2 billion spanning over 82 countries, FMO is one of the larger bilateral private sector developments banks globally. For more information: please visit www.fmo.nl
DCP
Diligent Capital Partners (DCP) is a private equity manager focused on food and agribusiness, export-oriented and consumer goods and services industries led by Dan Pasko and Mark Iwashko (www.diligent.capital). DCP led the deal origination and structuring and will be responsible for investment management throughout the investment period. Prior to the transaction, DCP worked with Allseeds on establishing its corporate governance system. Dan Pasko, DCP Co-Managing Partner, has joined Allseeds Board of Directors and declared: "We thank Allseeds shareholders Vyacheslav Petryshe and Kees Wrins for our joint work so far which led to this transaction, they have demonstrated the spirit of true partnership. As we followed their development since 2011 we ware impressed with their ability to deliver on ambitious plans despite all the obstacles, making Allseeds one of the leaders in Ukraine. We have no doubt in their ability to further develop Allseeds into the regional leader in agribusiness processing and logistics. We also thank our partners at FMO for collaborative work in structuring and executing this transaction. The real work is ahead of us.”
The press conference was followed by a tour around the processing facility as well as to Yuzhny port itself where one of the vessels was loading with products from Allseeds (sunflowerseed & rapeseed pallets). We would like to thank Allseeds for their hospitality and the opportunity to join both the press conference and the tour. Of course we welcome new Dutch investment into Ukraine and specifically the agricultural sector. We wish for FMO, DCP and Allseeds that the growth strategy will be realized soon.