Cherkizovo Group Completes Acquisition Of Pit-Product
Russian meat processor Cherkizovo Group has announced that it has completed the acquisition of Pit-Product from Finland's Atria Group.
The transaction will see Cherkizovo acquire two new meat-processing plants in Russia with an annual production capacity of 39,000 tonnes.
It also encompasses logistics facilities and trademarks, including the core brand – Pit-Product.
CEO of Cherkizovo Group Sergey Mikhailov commented, "We are happy that two modern plants with such a sizeable market share in Saint Petersburg and Leningrad region have been added to the list of the meat processing facilities of Cherkizovo Group.
"We will continue manufacturing products from Pit-Product range which are popular among consumers and, of course, will be using their capacities to produce sausage products under our Cherkizovo, Cherkizovo Premium and Pava-Pava brands."
In February of this year, the Cherkizovo Group signed a preliminary agreement with Atria Group, and the Federal Antimonopoly Service approved the transaction in March.
Eversheds Sutherland provided legal support for the transaction, while the UK-based goetzpartners acted as exclusive financial advisor to Cherkizovo Group.
Deloitte conducted financial and tax due diligence, the company added.
According to Cherkizovo Group, the company's current share in the Saint Petersburg sausage market is around 7% in value terms. Share of 'Pit-Product' products is about 5%.
Recently, the company reported an 8% year-on-year increase in turkey sales volumes to 10,690 tonnes in the first quarter of its financial year, while chicken sales volumes declined by 3% to 169,300 tonnes.