LLC TTR Holding (part of GC Rost) has addressed the Federal Anti-Monopoly Service of the Russian Federation, soliciting a preliminary agreement on acquiring 99% of shares of the LLC Agricultural Complex Churilovo. According to  Kommersant, experts estimate the value of Chelyabinsk agricultural complex at €106.5 million, but the interested parties did not disclose the transaction amount.

Chelyabinsk agricultural complex is the biggest greenhouse growing vegetables and leafy greens in the Urals. The greenhouse occupies an acreage of over 25 ha, and production volume reaches 25.000 tons of produce a year. Former Duma deputy, Mr. Sergey Weinstein is considered a beneficiary. The biggest investments in the enterprise were made in 2014-2015 when the production facility was modernized.

In 2020, the profit of LLC Agricultural Complex Churilovo decreased by 26.8%, which amounted to €1.2 million. In November 2020, a bankruptcy claim was made due to €367.000 of unpaid taxes. The press service of the agricultural complex reported that the financial difficulties were related to the pandemic and the decrease of demand for greenhouse produce in supermarket chains.

Currently, the holding comprises three land plots with greenhouses using supplemental lighting technology. The overall greenhouse acreage reaches 62.6 ha and the yearly production capacity amounts to 73.6 thousand tons.

“The agricultural complex is not the core asset for the investor; therefore it is logical that once issues arise with the business processes, tax service, etc., the owner took the decision to sell the asset. In this respect it is a positive fact that GC Rost is coming to the region as it will preserve the greenhouse complex and enhance the output”, commented the general director of Fruit and Vegetable Union, Mr. Mikhail Glushkov.

According to him, GC Rost has potential for further development, and one of the most efficient ways to do so is acquiring existing complexes instead of constructing buildings, especially when taking into account increasing prices of construction materials, components, and equipment. Without state funding, it is not advisable to construct greenhouse complexes from scratch, assures the expert.

After the deal is closed, GC Rost will significantly enhance its potential in the Urals. The company plans to have a greenhouse acreage of 300 ha by 2022.