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alt image

Russia’s Cherkizovo Grp closes deal to buy 2 pig farms for $100 mln

08 november 2010

Russian meat processor Cherkizovo Group has closed a deal to purchase two pig farms in the Penza and Lipetsk regions for U.S. $100 million, the company said in a statement Monday.

The group paid $19.2 million in cash for the deal and assumed the farms’ debts of $80.8 million.

The pig farms are expected to reach full capacity in 2012 and their combined output is expected to reach 25,000 tonnes of pigs in live weight. The acquisition is expected to increase the capacity of Cherkizovo Group’s pork division by almost 30% from the current level, the group said earlier.

Cherkizovo Group is one of Russia’s largest vertically integrated agricultural companies. It includes meat processing, pork, and poultry divisions.

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