Cherkizovo Group will be strengthened by the acquisition of Voronezhmyasoprom

Yesterday, Cherkizovo Group announced the acquisition of Voronezhmyasoprom, a set of agricultural assets, “in order to strengthen the vertical integration of the business”. The shareholder of both companies is Igor Babaev. As part of the deal, Cherkizovo Group bought a swine nucleus unit in the Voronezh region (the reproducer of 2.4 thousand sows with a platform for growing 10 thousand heads and a platform feeding on 6.7 thousand heads), an elevator with a storage capacity of 150 thousand tonnes and a land bank of approximately 30 000 ha. The Group also bought an elevator with a capacity of 60 thousand tonnes in the Penza region. The value of the assets is 4.46 billion roubles, including 2.8 billion roubles of debt, which Cherkizovo will take on itself. Payments under the deal will consist of 1.26 billion roubles in cash, along with 795 thousand units of OJSC Cherkizovo Group’s shares.