Cherkizovo to acquire Russian poultry producer Altaisky Broiler

Cherkizovo Group has signed a letter of intent (LoI) to purchase Russian poultry producer Altaisky Broiler.

Said to be in line with the Cherkizovo Group’s business growth strategy, the deal is expected to be closed upon completion of legal and financial due diligence, as well as following approval by the Russian Federal Antimonopoly Service.

If the deal is successful, the acquisition of Altaisky Broiler will allow the Cherkizovo Group to significantly expand its business footprint and gain access to the Siberian market.

The acquisition will also strengthen the company’s position in the poultry market, while increasing its share among domestic poultry producers to 12%.

Established in 2007, Altaisky Broiler operates a modern poultry production facility in Russia, which includes a hatchery, a feed mill and four fattening sites located in the Zonalny District of the Altai Territory. The company also owns a slaughterhouse and a meat packing plant in Biysk.

Its product portfolio includes nearly 100 varieties of chilled and frozen poultry products, which are sold through retail chains and convenience stores in the Siberian Federal District.

Last year, the company produced 67,000t of poultry products. Its farms can produce enough chicken to meet the needs of the Altai Territory and its neighbouring regions.

Cherkizovo and Altaisky Broiler are yet to confirm the final acquisition price of the deal.