RUSSIA: Cherkizovo claims poultry top spot with Lisko buy
Cherkizovo said it had acquired "a quality asset"
Russian meat processor Cherkizovo said today (26 March) it had become the country's largest poultry company with the acquisition of Lisko Broiler.
The deal is based on an enterprise value for Lisko Broiler of around RUR5bn (US$140.7m), including debt, Cherkizovo said.
The London-listed group said Lisko, based in the south of Russia, was the country's seventh-largest poultry producer, although it has a market share of 2%.
Buying Lisko will take Cherkizovo's production capacity to over half a million tonnes of live weight a year.
Sergei Mikhailov, Cherkizovo's CEO, said: "Acquisition of Lisko not only gives us strategic advantages, such as increasing the scale of our business and access to southern Russian markets, including a synergy effect that we will feel even in the first year of integration.
"Lisko's facilities are located in Voronezh Region, where Cherkizovo has a land bank, and this gives us an opportunity to build a vertical integration chain. Leveraging on Cherkizovo's distribution capabilities will help to increase market access for Lisko's products and save on logistics."
The deal will give Cherkizovo seven poultry production sites, a meat and bone meal production facility, as well as grain storage with capacity of 100,000 tonnes.
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