Cherkizovo Group has closed the deal to acquire a 50% stake in Tambov Turkey (Pava-Pava brand), the second-largest turkey producer in Russia, from Spain’s Grupo Fuertes.
The group’s consolidation of 100% of Tambov Turkey was approved by the Federal Antimonopoly Service of Russia in December.
The legal advisor of the transaction was Cleary Gottlieb Steen & Hamilton.
Sergey Mikhailov, CEO of Cherkizovo Group, said, "We are grateful to our friends and partners from Grupo Fuertes for 10 years of cooperation on Tambov Turkey project. Over the years, we have learnt a lot from them in terms of management, creation of products which meet European quality standards and got access to the advanced production technologies.
"I am sure that as a significant shareholder of Cherkizovo, Grupo Fuertes will continue making good use of their vast experience in the agri-industry to further develop all business segments of our company."
Details Of The Deal
In the deal, AIC Mikhailovsky, part of the Cherkizovo Group, acquired a 50 % stake in the authorised capital of Tambov Turkey from Grupo Fuertes.
The acquisition was made in exchange for 1,175,000 new shares issued by the group and valued at RUB 3.6 billion during a public offering.
As a result, Grupo Fuertes’ stake in the authorised capital of Cherkizovo Group rose from 8.58 % to 11.12 %.
Cherkizovo Group, the largest vertically integrated meat producer in Russia, reported 20.6% year-on-year growth in revenue to RUB 39.8 billion (€460 million) in the first half of 2021.
The Tambov Turkey joint venture was established by Cherkizovo Group and Grupo Fuertes on a parity basis in 2012.
Its first stage was launched in 2015, and in 2017, it started offering Pava-Pava-branded products, such as chilled chop meat and ready-to-cook products with natural spices.
In the summer of 2020, the second stage of Tambov Turkey was launched to increase its total annual capacity to 85,000 tonnes of meat products.
In 2021, production totalled about 80,000 tonnes.
'A Step Forward'
Rafael Fuertes from Grupo Fuertes, commented, "We are very satisfied with the partnership that we started a decade ago with the Cherkizovo Group. For Grupo Fuertes, this new coalition is a step forward in our relationship with the group, as we increase our percentage in the company and we consolidate a strategic relationship that unites us.
"We are committed, not only with turkey, but also with chicken and pork, mainly focusing on a firm and future-oriented strategic market such as Russia. We share the same strategy and most importantly, the same values.”
© 2022 European Supermarket Magazine. Article by Conor Farrelly. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.