HZPC Holland bv, world leader in potato breeding, announces the acquisition of all the remaining shares in the joint venture of the Finnish company HZPC Sadokas Oy.
With all shares of HZPC Sadokas Oy, HZPC Holland also acquires the Russian company AO HZPC Sadokas in Saint Petersburg. This company carries out all operational activities.
AO HZPC Sadokas produces seed potatoes in Russia, imports seed potatoes from Finland and The Netherlands and distributes these seed potatoes to potato growers across Russia. This acquisition is in line with the corporate strategy of HZPC Holland to aim for majority shareholding in all its participations.
HZPC Holland B.V. already owned 41.3% of the shares of HZPC Sadokas Oy and now also acquired the remaining 58.7% of the shares of this Finnish seed potato company. HZPC Holland buys the shares from the founder of the company, the major shareholder and managing director, Mr. Jaakko Rahko and from several Finnish minority shareholders.
Investing in Russian production
Russia has a large potato acreage. HZPC expects potato growing in Russia will further professionalise rapidly. A number of potato processing industries already invest or have the intention to invest in Russia to supply the Russian market. Production of good quality seed potatoes has its challenges in Russia, but is necessary. Western European seed potatoes are relatively expensive for Russian growers. The current political situation does not provide certainty that trade of seed potatoes from Western Europe to Russia will always be possible. However there is a demand for the HZPC varieties in Russia, for both the fresh market as well as for the industry. This is why HZPC choses to invest in the local production of HZPC seed potatoes.
Sadokas Oy was established in 1996 by Mr. Jaakko Rahko to export seed potatoes to Russia. In 2007 a collaboration with HZPC was initiated because several HZPC varieties were very suitable for the Russian market, while the Finnish potato company operated an excellent Russian distribution network. The joint venture proved to be profitable during the past years, with a growing annual turnover. The acquisition of the shares has no consequences for customers, growers and personnel.