December 27, 2018
Cherkizovo Group acquires 75% of Russian retail meat group
Russia's Cherkizovo Group signed a sale-purchased agreement to acquire 75% of Samson – Food Products (SFP), a group of companies offering meat products under such brands as Samson, Grillmania, Fileya and others.
Approved by the Russian Federal Antimonopoly Service (FAS), the acquisition will cost Cherkizovo RUB350 million (US$5.1 million), with ca. RUB550 million (US$8 million) in debt to be assumed on top. The final price will be based on SFP's performance in 2019.
SFP is based in St Petersburg, Russia. The acquisition of the company is set to strengthen Cherkizovo's position in St Petersburg and the North-Western Federal District (NWFD) – a region that the group has been closely focused on since 2017.
Cherkizovo estimated that its Petelinka brand currently accounts for 29% of branded poultry sales in the largest retail chains across the NWFD. Pava-Pava has captured 53% of the turkey market, while Cherkizovo's pork sales account for 8% of the branded segment.
Cherkizovo's CEO Sergey Mikhailov said that the acquisition was very well-aligned with the group's development strategy as set to expand its branded portfolio of higher value-added products. "Samson has been a very strong brand historically, and we consider giving it a new life in the sausage segment," he added.
SFP will retain control over its day-to-day operations with the same management team in place. The deal will provide the company with access to the raw materials and professional expertise of Russia's largest meat producer.
The partnership will also enable SFP to penetrate new markets outside St Petersburg and the NWFD, which currently make up 90% of its sales.