Cherkizovo Group, Russia's largest meat producer, has entered into a preliminary agreement to purchase meat processing company LLC Pit-Product from the Finnish group Atria.
The acquisition will see Cherkizovo increase its share in the sausage market in the North-West Federal District.
With a population of nearly 14 million, it is one of the key regions where the company operates.
The preliminary agreement was signed by LLC APK Mikhailovsky, a part of Cherkizovo Group, and Atria Group's current owner.
Modern Meat Processing Facilities
Pit-Product owns two modern meat processing production facilities in the Leningrad region in Gorelovo and Sinyavino.
It has a production capacity of 39,000 tonnes of sausages, hot dogs, and deli meat per annum, serving clients such as federal retail chains and foodservice establishments.
As of the end of 2020, the production facilities employed approximately 700 people.
The deal sees Cherkizovo Group take over logistics facilities, the Pit Product brand, and other intellectual property rights along with the production facilities.
'Value-Added Products'
CEO of Cherkizovo Group, Sergey Mikhailov, commented, "Increase of value-added products manufacturing remains of the most important priorities in Cherkizovo Group's development.
"For that reason, acquisition of Pit-Product, one of the most technologically advanced processing facilities in the North-West Federal District, will significantly reinforce our positions in such an important and big market."
The transaction, subject to approval by the Federal Antimonopoly Service, will close in the first half of 2021, the company added.
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Conor Farrelly. Click subscribe to sign up to ESM: The European Supermarket Magazine.
