UFA, RUSSIA — Cherkizovo Group, Russia’s largest meat producer, earlier this month submitted the winning bid for Russian Grain Ufa’s poultry, crop and fodder production businesses as part of an auction held at the Auction House of the Russian Federation. The winning bid was 6.37 billion rubles ($100.77 million)
According to Cherkizovo, the acquisition includes 100% shares in JSC Bashkir Poultry Farm, JSC Turbaslinsky Broilers, JSC Ufa Grain Products Plant, Bashkir Grain+ LLC, Bashkir Grain LLC and Turbaslinsky Broiler Trading House LLC. The deal also includes the rights to claim under loan agreements between Trust and JSC Bashkir Poultry Plant and JSC Turbaslinsky Broilers.
The acquired companies mark Cherkizovo’s first production assets in Bashkortostan, Russia. Included in the deal are five poultry farms with an annual live-weight capacity of 65,000 tonnes of broiler meat, annual processing capacity of 25,000 tonnes, annual marketable egg production of 750 million eggs, a feed mill with an annual capacity of 240,000 tonnes and a land bank of 18,000 hectares. The poultry products of the Bashkir facilities are both sold domestically and exported.
“The company is the largest agricultural holding in Bashkortostan,” Cherkizovo said. “Its assets will benefit from synergies with other Cherkizovo Group sites, helping to strengthen our position in the poultry market in the Urals Federal District and neighboring Russian regions. Going forward, Cherkizovo plans to upgrade the acquired facilities, which will help boost broiler meat output.”
Earlier this year Cherkizovo detailed plans to invest 12.5 billion rubles to expand its pork and feed mill production in Russia’s Tambov Region.