RUSSIA: Cherkizovo buys greenfield pork sites.
The firm’s board of directors approved the purchase of the facilities, which are located in the Penza and Lipetsk regions of central Russia, at a meeting yesterday (3 June).
Around $20m of the purchase price will be payable in cash and the group will assume the acquired entities' outstanding debt at the time of acquisition, which is expected to be around $80m.
Sergey Mikhailov, CEO of Cherkizovo, said: "We are pleased that the independent members of the board of directors approved the transaction. We anticipate finalising the acquisition in the second half of 2010. This deal will be a milestone in the consolidation of Russia's meat market and an exciting development in the company's stated strategy to deliver shareholder value."
The complexes are expected to reach their full combined capacity of 25,000 live-weight tonnes by 2012, resulting in an increase in Cherkizovo's pork production capacity of almost 30% from the group's current overall pork production capacity.
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