October 2, 2014

Russia: Biggest 'bird' grows from acquisition

Russian agricultural holding White Bird has acquired the assets of bankrupt poultry producer Optifood, according to Sergey Gorban, vice-governor of the Rostov Oblast.

This will create a new largest player on Russian soil, most experts said.

According to Gorban, the new investor took all obligations provided by the agreement - in particular the construction of a feed plant with a capacity of at least 120,000 tonnes per year, and the investment of at least RUB 2 bn (US$65 million) in launching production at the assets of Optifood.

Optifood went bankrupt in 2012, resulting from a large debt burden and lack of turnover funds. The company had been one of the biggest poultry producers in southern Russia, with an overall capacity of 85,000 tonnes of poultry production per year.

White Bird owns several agricultural assets in Belgorod and Kursk Oblasts. With the acquisition of Optifood, White Bird will become one of the top-four players of the Russian poultry market after Cherkizovo, BEZRK Belgrankorm and HAP Resource. Overall production capacity of the company will now be close to 200,000 tonnes of poultry and 92 million eggs per year.