May 18, 2011

Cherkizovo Group completes transaction to acquire Mosselprom

OJSC Cherkizovo Group, one of Russia's leading integrated and diversified meat producers, has completed the transaction to acquire 100% of Mosselprom.  

Mosselprom is a large, diversified vertically-integrated agro-industrial holding company, and the transaction is fully consistent with Cherkizovo Group's strategy of dynamic development. The transaction has been approved by the Russian anti-monopoly authorities. 

The inclusion of this large producer into the Group brings one of the best known Russian brands to Cherkizovo's consumer portfolio, significantly increasing the scope of the Group's activities.  The transaction will strengthen Cherkizovo's position in the high-margin Moscow region market and will also increase Cherkizovo's market share in Russia's poultry segment (in 2010 Cherkizovo Group had 7% of the market and Mosselprom had 2%). 

Mosselprom is a multi-industrial agro holding, that comprises poultry production and feed production, as well as land cultivation and cropping.

The following assets of Mosselprom will be included in Cherkizovo Group's structure:

Poultry segment - four poultry factories for broiler breeding - production in 2010 was approximately 56,500 tonnes of sellable weight (67,000 tonnes of live weight poultry meat, total installed capacity is 67,000 of sellable weight); three incubation facilities with total annual capacity of 68 million eggs per year; and three slaughter facilities with the capacity to process 215 000 heads per day. The factories have implemented HACCP system and comply with EU quality requirements.

Pork segment - a state-of-the-art pork complex with annual production in 2010 of approximately 8,700 tonnes of live-weight (total annual capacity of 12 500 tonnes of live weight pork). 

Feed production - a feed production facility with a capacity of 150,000 tonnes of fodder, including an elevator with a capacity of 60 000 tonnes 

Land and cropping - an operational land bank of 27,500 hectares and grain storage facilities with an overall storage capacity of more than 45 000 tonnes 

Trading company involved in the selling of poultry meat and processed meat products.