Cherkizovo acquires assets from Russian Grain Ufa
Company won the poultry, crop and feed production businesses at auction
Russia’s Cherkizovo Group has acquired the poultry, crop and feed production businesses of Russian Grain Ufa for RUB6.37 billion (US$101.3 million) in an auction on December 5.
The single lot included 100% shares in JSC Bashkir Poultry Farm, JSC Turbaslinsky Broilers, JSC Ufa Grain Products Plant, Bashkir Grain+ LLC, Bashkir Grain LLC and Turbaslinsky Broiler Trading House LLC, as well as rights to claim under loan agreements between Trust and JSC Bashkir Poultry Plant and JSC Turbaslinsky Broilers. The winning bidder was AIC Mikhailovsky (part of Cherkizovo Group), which had previously obtained approval from the Federal Antimonopoly Service to acquire these assets.
For Cherkizovo Group, the acquired companies are the first production assets in Bashkortostan. They include five poultry farms with an annual live-weight capacity of 65,000 tons of broiler meat, annual processing capacity of 25,000 tons, annual marketable egg production of 750 million eggs, a feed mill with an annual capacity of 240,000 tons and a land bank of 18,000 hectares. The poultry products of the Bashkir facilities are both sold domestically and exported.
Russian Grain Ufa has 2,700 employees. The company is the largest agricultural holding in Bashkortostan. Its assets will benefit from synergies with other Cherkizovo Group sites, helping to strengthen its position in the poultry market in the Urals Federal District and neighboring Russian regions. Going forward, Cherkizovo plans to upgrade the acquired facilities, which will help boost broiler meat output.