May 3, 2021

Cherkizovo closes transaction to acquire LLC Pit-Product

Cherkizovo Group announced on April 30 that it has closed the acquisition of 100% of shares in LLC Pit-Product from the Finnish Atria Group.

As a result, Cherkizovo acquired two new meat-processing plants with a combined capacity of 39,000 tonnes of sausages, hot dogs and meat deli per annum. The transaction also included logistics facilities and trademarks, as well as LLC Pit-Product's core brand, Pit Product.

LLC Pit-Product is based in the Russia's Leningrad region.

The company's plants will continue manufacturing popular products from the existing range and launching new sausage products under Cherkizovo, Cherkizovo Premium and Pava-Pava brands.

Cherkizovo Group signed a preliminary agreement with Atria Group on the acquisition of LLC Pit-Product on February 15. In March, the transaction was approved by the Federal Antimonopoly Service.

"We are happy that two modern plants with such a sizeable market share in Saint Petersburg and Leningrad region have been added the list of the meat processing facilities of Cherkizovo Group, said Sergey Mikhailov, chief executive officer of Cherkizovo Group. "We will continue manufacturing products from Pit-Product range which are popular among consumers and, of course, will be using their capacities to produce sausage products under our Cherkizovo, Cherkizovo Premium and Pava-Pava brands."

According to Cherkizovo Group, the current share of the company in Saint Petersburg's sausage market makes around 7% in value terms.

- Cherkizovo