Russian meat producer Cherkizovo has acquired LISKO Broiler, a poultry producer based in the Voronezh region, for RUB5bn ($140.7m), including debt.
The acquisition will allow Cherkizovo to strengthen its presence with production capacity in excess of half a million tons live weight per year.
The deal includes purchase of seven poultry production facilities, four parent flock sites, two reproduction flock sites, slaughtering complex with capacity of 9000 heads per hour, hatchery with capacity of 80 million eggs per year, feed mill with 40 tons per hour capacity, grain storage facility with capacity of 100,000 tons, meat and bone meal production facility, and rendering facility.
LISKO Broiler is one of the leading poultry producers in the central and southern federal districts.
Cherkizovo CEO Sergei Mikhailov said that the company made a major step towards market leadership, which is in line with its long-term strategy combining organic growth and M&A.
"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," Mikhailov added.
"Leveraging on Cherkizovo's distribution capabilities will help to increase market access for LISKO's products and save on logistics."
Sberbank CIB provided financial advisory services, while Hannes Snellman acted as legal consultant for Cherkizovo on the deal.
