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Cherkizovo Group Completes Acquisition Of Pit-Product

Published on May 3 2021 12:30 PM in A-Brands tagged: Russia / Acquisition / finland / Cherkizovo Group / Pit-Product / Atria Group

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."

The Acquisition

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.

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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.

© 2021 European Supermarket Magazine. Article by Dayeeta Das. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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