Cherkizovo aims to buy majority of Samson – Food Products

Cherkizovo Group, the largest vertically integrated meat producer in Russia, intends to acquire 75 percent of Samson – Food Products, a group of companies based in St. Petersburg, Russia, and offering meat products under such brands as Samson, Fileya and others.

LukaszTyrala, Freeimages.com
LukaszTyrala, Freeimages.com

Cherkizovo Group, the largest vertically integrated meat producer in Russia, intends to acquire 75 percent of Samson – Food Products, a group of companies based in St. Petersburg, Russia, and offering meat products under such brands as Samson, Fileya and others.

The value of the proposed deal has not been not disclosed.

Once the Federal Antimonopoly Service of Russia approves the deal, Samson – Food Products (SFP) will still operate independently with no changes to its management. The parties describe the move as a strategic partnership.

This pending deal is set to strengthen Cherkizovo’s positions in St. Petersburg and the North-Western Federal District (NWFD). The group tapped into the latter in 2017 and has already entrenched itself in the region. The company estimates that its Petelinka brand currently accounts for 29 percent of branded poultry sales in the largest retail chains across the NWFD. The Pava-Pava brand has captured 53 percent of the turkey market, while Cherkizovo’s branded pork sales account for 8 percent of the branded segment, the Russian meat and poultry company stated in a press release.

In turn, Samson Group will get access to the raw materials and professional expertise of Russia’s largest meat producer, Cherkizovo stated. This partnership will also enable it to penetrate new markets outside St. Petersburg and the NWFD, which currently make up 90 percent of SFP’s sales.

“The deal is well-aligned with Cherkizovo’s development strategy. The Samson brand is associated with natural, fresh products and a focus on healthy foods, which is fully in line with our values. In addition, our partnership will serve to expand the group’s branded portfolio of higher value-added products,” noted Sergey Mikhailov, chief executive officer of Cherkizovo Group.

As was reported earlier, the group plans to increase the share of these products from 60 to 80 percent of its revenue by 2020.

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