Russia's Cherkizovo Group Completes Acquisition Of Altaisky Broiler
Russia’s largest meat producer, Cherkizovo Group, has completed the acquisition of poultry firm Altaisky Broiler from holding company Prioskolie.
The transaction, worth RUB 4.5 billion (€59 million), was approved by the Russian Federal Antimonopoly Service.
In the summer of 2018, the meat producer had announced its interest in acquiring the Altai Territory-based poultry producer.
New Regional Footprint
Through this acquisition, Cherkizovo will make inroads into the Siberian Federal District market, and strengthen its position as a leader in the domestic poultry industry.
The CEO of Cherkizovo, Sergey Mikhailov, explained that the group was mainly interested in moving into the region’s major cities.
“We see plenty of opportunities for our development in Siberia. Nationwide retail chains are actively expanding in the region, and we are determined to match their growth,” Mikhailov added.
Cherkizovo has also acquired production facilities from Krasnoyaruzhsky Broiler, located in the Belgorod Region, from Prioskolie.
The meat giant plans to use Altaisky Broiler as the foundation for its distribution system in the Siberian Federal District.
Chicken produced in the facility will be sold under Altaisky Broiler, Petelinka and Chicken Kingdom brands.
Altaisky Broiler is one of the leading meat producer and supplier in the Siberian poultry market with an annual output of 67 thousand tonnes, in live weight, of poultry products, and 58 thousand tonnes of finished products.
In November of this year, the Cherkizovo Group reported a net adjusted profit of RUB 3.4 billion (€45 million) in the third quarter of its financial year.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.