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alt image

Russia: Cherkizovo Completes Acquisition of Two Pork Farms

08 november 2010

OJSC Cherkizovo Group has today announced the completion of the acquisition of two greenfield pork farms in the Penza and Lipetsk regions of Central Russia.

The company said the total cost of the transaction was USD100 million, of which approximately USD19.2 million was paid in cash.

Sergey Mikhailov, CEO of Cherkizovo Group, said: "We continue to deliver on our strategy of prioritizing the development of the Group's Pork business. The aggressive growth of this business demonstrates our effort to further enhance our leading position in the still highly fragmented Russian pork market, and we are delighted to have acquired these sites. Going forward, Cherkizovo will continue to lead the consolidation and development of the Russian meat sector."

The company said: “ It is expected that, in the current year, production at the new sites will be approximately 50% of their full capacity. The complexes are expected to reach their full combined capacity of 25,000 live-weight tonnes in 2012, resulting in an increase of almost 30% in Cherkizovo Group's pork production compared to 2009.”

Furthermore, together with the recently announced Greenfield construction of 3 new complexes in Tambov, Voronezh and Lipetsk with a combined capacity of 37,500 live-weight tonnes, overall production by Cherkizovo Group in the pork segment is expected to increase approximately 180% compared to 2009 levels and reach approximately 153,000 live-weight tonnes in 2013.

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