Cherkizovo, a major Russian agro industrial group with leading positions in the poultry, pork, and meat processing markets, has signed a letter of intent to acquire Altaisky Broiler from fellow Russian company Prioskolie.

According to a press release from Cherkizovo, the anticipated acquisition fits perfectly into the group’s strategy.

The transaction will be closed after legal and financial due diligence of the target company is completed, and the final acquisition price is yet to be determined by the parties. The anticipated acquisition is also subject to approval by the Russian Federal Antimonopoly Service.

Advertisement

History, capabilities of Altaisky Broiler

In 2017 Altaisky Broiler produced 67 thousand tons (live weight) of poultry products, according to Cherkizovo. An acquisition of this size will enable Cherkizovo to considerably expand its business footprint, open up access to the Siberian market, and add one of the strongest and most popular local brands to the Group's portfolio. This will also strengthen Cherkizovo's positions in the poultry market and increase its share among domestic poultry producers to 12 percent.

The No. 1 poultry producer in the Altai Territory, Altaisky Broiler is also among the largest poultry producing companies in the Siberian Federal District. The company supplies frozen and chilled whole chickens, chicken meat, and by-products. Altaisky Broiler’s products are winners of local and regional trade fair awards and are certified to the highest environmental safety standards. Capacity of the company's poultry farms, according to the press release, is enough to supply the entire Altai Territory and neighboring regions with quality chicken meat.

Established in 2007, Altaisky Broiler delivered its first products to the market in December 2008. Today, it is a state-of-the-art poultry production facility comprising a hatchery, a feed mill, four fattening sites located in the Zonalny District of the Altai Territory, a slaughterhouse, and a meat packing plant in Biysk. Chickens are raised on a well-balanced diet of compound feeds produced in-house. Altaisky Broiler offers around 100 SKUs of chilled and frozen poultry products sold through the largest local and federal retail chains and convenience stores in the Siberian Federal District. Products of the company have broad appeal among consumers and enjoy strong demand.