Russian meat producer Cherkizovo Group has announced that it has acquired the Bashkortostan-based poultry, crop, and fodder production businesses of Russian Grain Ufa for RUB 6.37 billion (€96 million).
The business was sold by non-core asset bank, Trust, at an auction held at the Auction House of the Russian Federation.
The deal includes 100% shares in JSC Bashkir Poultry Farm, JSC Turbaslinsky Broilers, JSC Ufa Grain Products Plant, Bashkir Grain+ LLC, Bashkir Grain LLC and Turbaslinsky Broiler Trading House LLC, as well as rights to claim under loan agreements between Trust and JSC Bashkir Poultry Plant and JSC Turbaslinsky Broilers.
The winning bidder was AIC Mikhailovsky, part of Cherkizovo Group, which had previously obtained approval from the Federal Antimonopoly Service to acquire these assets.
The acquisition will strengthen the company's position in the poultry market in the Urals and neighbouring regions, Cherkizovo noted.
The Deal
The acquired companies are the first production assets for Cherkizovo Group in Bashkortostan and includes five poultry farms with an annual live-weight capacity of 65,000 tonnes of broiler meat and annual processing capacity of 25,000 tonnes.
The firms also boast annual marketable egg production of 750 million, a feed mill with an annual production capacity of 240,000 tonnes and a land bank of 18,000 hectares.
Poultry products from the Bashkir facilities are both sold in the domestic market and exported.
Currently, Russian Grain Ufa employs 2,700 people and Cherkizovo plans to upgrade the acquired facilities, which will help boost broiler meat output.
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