February 16, 2021

 
Cherkizovo agrees on purchase of sausage production facility in Leningrad, Russia

Cherkizovo Group has reached a preliminary agreement on the purchase of meat processing company LLC Pit-Product from Finland's Atria Group.

The transaction will help Cherkizovo increase its share in the sausage market in the Russia's North-West Federal District, one of the key regions of the company's presence.

A preliminary agreement for the acquisition of 100% of shares in LLC Pit-Product was signed by LLC APK Mikhailovsky - a subsidiary of Cherkizovo Group - with the current owner of the company, Atria Group. Pit-Product owns two modern meat processing production facilities in Leningrad region in Gorelovo and Sinyavino. The plants have a per annum production capacity of 39,000 tonnes of sausages, hot dogs and meat deli. Clients of Pit-Product include federal retail chains and food service establishments.

LLC Pit-Product has 700 people employees, as of the end of 2020. Along with the production sites, the transaction will also include logistics facilities, the Pit Product brand and other intellectual property rights.   

The transaction is expected to be closed in the first half of 2021 following approval by the Federal Antimonopoly Service.

"Increase of value-added products manufacturing remains of the most important priorities in Cherkizovo Group's development," said Cherkizovo Group CEO Sergey Mikhailov."For that reason, the 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 will also contribute to further increase of sales in the food service channel."

- Cherkizovo