Cherkizovo Group closed the deal on the purchase of Pit-Product LLC

Cherkizovo Group (MOEX: GCHE), Russia's largest producer of meat products, announces the closing of a deal to acquire 100% in LLC Pit-Product. At the facilities of its factories, the production of popular product names from the current assortment will continue, and the production of sausage products under the Cherkizovo, Cherkizovo Premium and Pava-Pava brands will also begin.

APK Mikhailovsky LLC, part of the Cherkizovo Group, on April 30 completed the acquisition of 100% in Pit-Product LLC (Leningrad Region) from the Finnish Atria Group. As a result, Cherkizovo's business included two more meat processing plants capable of producing 39 thousand tons of sausages, frankfurters and meat delicacies per year. Also, the subject of the transaction were logistics facilities and trademarks, including the main brand of the enterprise - Pit Product.

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

Legal support for the transaction was provided by Eversheds Sutherland. Goetzpartners acted as the exclusive financial advisor to Cherkizovo Group, and Deloitte performed the financial and tax due diligence.

“We are pleased that the list of meat processing enterprises of the Cherkizovo Group has been replenished with two more modern plants, whose products have a significant share in the market of St. Petersburg and the Leningrad Region. We intend to continue to produce products from the range of Pit-Product that are in demand among consumers and, of course, we will use its capacities for the production of sausages under our Cherkizovo, Cherkizovo Premium and Pava-Pava brands, - comments CEO of Cherkizovo Group Sergey Mikhailov.

According to the Cherkizovo Group, the company's share in the market of sausage products in St. Petersburg is now about 7% in value terms, the share of products of Pit-Product LLC is about 5%.