Cherkizovo Group Acquires 75% of Russian Meat Products Company
Cherkizovo Group, the largest vertically integrated meat producer in Russia, is to acquire 75% of St Petersburg-based Samson – Food Products, a group of companies offering meat products under such brands as Samson, Grillmania, Fileya and others. The acquisition will cost Cherkizovo RUB350 million (€4.5 million), with about RUB550 million in debt to be assumed on top. The final price will be based on SFP’s performance in 2019.
The deal 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 estimates 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.
The acquisition is in line with Cherkizovo’s development strategy of expanding its branded portfolio of higher value-added products. Samson – Food Products will retain control over its day-to-day operations with the same management team in place. The deal will provide SFP with access to the raw materials and professional expertise of Russia’s largest meat producer. This partnership will also enable it to penetrate new markets outside St Petersburg and the NWFD, which currently make up 90% of its sales.
