December 27, 2018

Cherkizovo Group buys out chicken meat producer's debt

Cherkizovo Group had acquired Russian Agricultural Bank's rights to claim a total of RUB6.5 billion (US$94.3 million) from Belaya Ptitsa Kursk, Belaya Ptitsa Belgorod and Zagorye under their loan and security agreements.

Belaya Ptitsa Kursk is a key asset of the Belaya Ptitsa Group, a chicken meat manufacturer, whose share of the Russian meat market in 2017 stood at 5% in volume terms. It operates an integrated production complex for chicken meat, including an incubator, seven growth sites and a poultry-processing plant.

According to Cherkizovo's CEO Sergey Mikhailov, the group plans to relaunch the production facility in Q1 2019 at a total estimated cost of RUB0.5 billion, using the site in combination with its existing parent stock sites and feed mills to leverage synergy.

He said that the deal would give Cherkizovo access to a broader market for its high-quality products. Previously, the group estimated its share of the chicken meat market at 12%.

- Cherkizovo