Moscow, Russia – April 30 – Cherkizovo Group (MOEX: GCHE), the largest meat producer in Russia, announces closing of the acquisition of 100% of shares in LLC “Pit-Product”. Their plants will continue manufacturing popular products from the existing range, as well as launch new sausage products under Cherkizovo, Cherkizovo Premium and Pava-Pava brands.
On April 30, LLC “APK Mikhailovsky”, a part of Cherkizovo Group, closed the transaction to acquire 100% of shares in LLC “Pit-Product” (Leningrad region) from the Finnish Atria Group. As a result, Cherkizovo acquired two new meat-processing plants with the capacity of 39 000 tons of sausages, hot dogs and meat deli p.a. The transaction also included logistics facilities and trademarks, including their core brand – Pit Product.
Cherkizovo Group signed a preliminary agreement with Atria Group on LLC “Pit-Product” acquisition on February 15. In March the transaction was approved by the Federal Antimonopoly Service.
Legal support of the transaction was provided by Eversheds Sutherland. goetzpartners acted as exclusive financial advisor to Cherkizovo Group. Financial and tax due diligence was conducted by Deloitte.
“We are happy that two modern plants with such a sizeable market share in Saint Petersburg and Leningrad region have been added 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”, comments Sergey Mikhailov, CEO of Cherkizovo Group.
According to Cherkizovo Group, current share of the company in Saint Petersburg sausage market makes around 7% in value terms. Share of LLC “Pit-Product” products is around 5%.