Sucden signs final terms for acquiring remaining Agroservis stake from Trio Group
On March 20, 2020, SUCDEN signed a legally binding agreement with TRIO Group to acquire the remaining stake and so consolidate 100% of the share capital of LLC Agroservis, which owns a sugar business, sugar-beet assets and beet-growing areas related to Eletsky sugar mill in Russia.
With this transaction, SUCDEN will maintain its focus on serving customers through its highly reliable network of assets and teams. TRIO Group will continue to focus on developing agricultural assets, breeding dairy cattle and farming potatoes.
The two parties are currently finalizing the terms of the deal, which remains subject to all necessary approvals.
SUCDEN is a private French group with a turnover of around $6 billion. It is a global commodity merchant, grower, processor, logistics provider, distributor, trader, broker and ship owner. The group's key activities are in sugar, cocoa, coffee, ethanol, freight and derivatives brokerage. The company buys and ships 8.5 million metric tons of sugar a year. The Group's headquarters are in Paris, and it has offices in more than 25 countries, as well as logistics and processing facilities in several locations in Africa and Latin America. In all, it employs around 5,900 staff.
SUCDEN entered the Russian sugar market in 1998, with the relaunch of an agricultural and industrial development initiative. It is one of the country’s top four sugar producers, with activities including agriculture, processing and distribution. The group cultivates more than 244,000 hectares of arable land and grows a mix of sugar beet, wheat, barley, sunflowers, peas and corn. It operates four mills, in the Lipetsk, Penza and Krasnodar regions of Russia. These have grown to process more than 5 million metric tons of sugar beet a year. The resulting sugar production is now about 800,000 metric tons. SUCDEN's mills and farming activities play a significant role in their local economies, with SUCDEN employing more than 4,900 people in Russia.
TRIO Group is a full-cycle agricultural holding that has been operating since 1997. After the transaction with SUCDEN, the group will comprise various agricultural assets, including:
- crop production – 25,000 hectares of arable land, two agricultural divisions in four districts of the Lipetsk region, two elevators with a total storage capacity of more than 80 thousand tons
- dairy-cattle breeding – two complexes for 3,000 dairy cows in total; plus Shkola Deystviya (School of Action), a training center for livestock breeding
- full-cycle potato farming: growing, irrigation, and storage capacity of 64 thousand tons a year.