Cherkizovo in October first announced its intent to make the acquisition.
The deal has been approved by the Russian Federal Antimonopoly Service (FAS), but the final price will be based on SFP's performance in 2019.
This transaction is expected 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 percent of branded poultry sales in the largest retail chains across the North Western Federal District. Pava-Pava has captured 53 percent of the turkey market, while Cherkizovo’s pork sales account for 8 percent of the branded segment.
Cherkizovo's CEO Sergey Mikhailov said that the acquisition was very well-aligned with the group’s development strategy as set to expand its branded portfolio of higher value-added products. “Samson has been a very strong brand historically, and we consider giving it a new life in the sausage segment”, he added.
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 percent of its sales.
Eversheds Sutherland acted as legal advisor for Cherkizovo, advising on due diligence and crafting of agreements.