RUSSIA, Warsaw. Cherkizovo Group agreed to acquire Russia’s third largest turkey producer Krasnobor based in Tula for RUB 1.9 bn, including debt.
This acquisition is set to bolster Cherkizovo’s position in the fast-growing market of turkey products and create strong synergies with the meat processing facilities that the Group will build in the Tula Region.
AIC Mikhailovsky (part of Cherkizovo Group) has agreed with the owners of Krasnobor to acquire their stakes in the company. Russia Partners Fund will sell 57.7%, Arkady Levin, the founder of Krasnobor – 24.5%, with the remaining 17.8% to be bought from minority shareholders.
The deal for a total consideration of RUB 1.9 bn, including Krasnobor’s debt of RUB 600 m, has already been approved by the Russian Federal Antimonopoly Service. Cleary Gottlieb Steen & Hamilton and KPMG acted as Cherkizovo Group's advisers on the deal.
Founded back in 2000, Krasnobor owns turkey breeding and production facilities in the Leninsky and Novomoskovsky districts of the Tula Region. It offers a wide range of products under the Krasnobor brand and ranks third in the Russian turkey market, boasting output of 27,200 t of live-weight turkey meat last year. Cherkizovo Group’s Tambov Turkey (Pava Pava brand) holds the second place with 57,000 t produced in 2020 (2021 guidance is about 80,000 t).