Agroholding 'Kernel' Acquires Enselco for $348 Million

Kernel, a prominent agroholding in Ukraine and the largest taxpayer in the agricultural sector, has made headlines with its recent announcement regarding the acquisition of Enselco Holding Limited. This strategic move involves the purchase of 100% of Enselco's shares, a company that boasts a substantial land bank of 190,000 hectares and is controlled by Andriy Verevskyi, the chairman of Kernel's board of directors and its majority owner.

According to an official statement released by Kernel, the total value of the transaction amounts to $348 million, reflecting a 5% discount ($18 million) from an independent appraisal of the fair market value, which was estimated at $366 million. This appraisal was conducted by a reputable international valuation expert at the request of the company and under the supervision of its independent directors. Kernel emphasized that the purchase price was determined by directors without conflicts of interest and was accepted by the seller, Andriy Verevskyi. The discount was applied to ensure that the deal provides a clear economic benefit to the company compared to the independently assessed fair value.

Currently, Enselco manages a consolidated agricultural business encompassing 190,000 hectares of leased agricultural land, along with its own network of grain storage facilities, agricultural machinery, and equipment, as well as a fleet of grain wagons. The scope of the deal includes agricultural assets that Kernel had previously sold in 2022-2023 for $210 million, along with additional assets that Enselco has acquired and integrated since then, including 56,000 hectares of leased land, a network of grain storage facilities, grain wagons, agricultural machinery, and corresponding working capital.

The payment for the transaction will be made in two installments: $300 million will be paid immediately upon signing the purchase agreement, while the remaining amount will be due by June 30, 2026. The company stated, 'This transaction will secure the core production supply chain for the company and support the value creation chains for grain exports and oilseed processing within the group.' It was also noted that Andriy Verevskyi abstained from voting on the board decisions approving this deal.

Kernel is recognized as the world's largest producer and exporter of sunflower oil, as well as the largest grain exporter from Ukraine. The company operates an extensive network of logistics assets and is a leading producer of grains and oilseeds in Ukraine. Additionally, Kernel is one of the largest producers and sellers of bottled oil in the country, engaging in the cultivation and marketing of agricultural products.

In the first half of the 2026 financial year (July-December 2025), Kernel reported a 33% decrease in net profit compared to the same period last year, falling to $119 million. The company's consolidated revenue amounted to $1.924 billion, which is a 1% decline from the first half of the 2025 financial year, while EBITDA dropped by 14%, reaching $247 million.