Cherkizovo Group, Russia's largest meat and feed producer, has acquired Lisko Broiler, a poultry producer in the Veronezh region of Southern Russia. The purchase makes Cherkizovo the country's largest poultry producer, with production capacity exceeding 500,000 metric tons live weight annually.

Lisko Broiler is Veronezh's largest poultry producer and one of the market leaders in the Central and Southern Federal Districts. According to Russian Poultry Union data, Lisko ranks seventh among Russia's top poultry producers with a 2 percent market share. Its annual production capacity is approximately 95,000 metric tons live weight.

The 5 billion ruble (US$146 million) purchase brings Cherkizovo seven poultry production facilities, four parent flock sites with a slaughterhouse facility of 4,000 birds per hour, two breeder stock sites, a slaughtering complex with capacity for 9,000 head per hour, a hatchery with a capacity for 80 million eggs each year, a feed mill with a 40-tons-per-hour capacity, grain storage facilities with total storage capacity of 100,000 metric tons, meat and bone meal production facility, and a rendering facility.

"We have made a major step towards market leadership, which is in line with our long-term strategy of combining organic growth with mergers and acquisitions," said Cherkizovo CEO Sergei Mikhailov. "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.

"Lisko's facilities are located in the Voronezh region, where Cherkizovo has a land bank, and this gives us an opportunity to build a vertical integration chain. Leveraging on Cherkizovo's distribution capabilities will help to increase market access for Lisko's product and save on logistics."