Business Cherkizovo Group acquires 75% of Samson–Food Products

by Editor fleischwirtschaft.com
Tuesday, January 08, 2019
This deal is set to strengthen Cherkizovo’s position in St Petersburg and the North-Western Federal District (NWFD).
Photo: Cherkizovo
This deal is set to strengthen Cherkizovo’s position in St Petersburg and the North-Western Federal District (NWFD).

The company signed sale-purchased agreement to acquire 75% of St Petersburg-based Samson – Food Products (SFP). Approved by the Russian Federal Antimonopoly Service (FAS), the acquisition will cost Cherkizovo RUB 350 mill., with circa RUB 550 mill. in debt to be assumed on top. The final price will be based on SFP’s performance in 2019.

This 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. The Company 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.

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.

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