Finnish food company Atria has agreed to sell its Russian subsidiary OOO Pit-Product to APK Mikhailovsky, a unit of Russian meat producer Cherkizovo Group.
The wholly owned Atria subsidiary produces food products for the retail and foodservice channels. OOO Pit-Product owns meat processing facilities in Gorelovo and Sinyavino, and had approximately 700 employees at the end of last year.
Along with the two production sites, which make products including sausages and hot dogs, the transaction will also include logistics facilities, the Pit-Product brand and other intellectual property rights.
The impact of the divested business on Atria Group’s net sales is approximately €35 million. OOO Pit-Product – which Atria acquired in 2005 – has been loss-making.
The transaction, which is subject to the approval of the Russian competition authority, is expected to close during the first half of 2021.
“Increase of value-added products manufacturing remains of the most important priorities in Cherkizovo Group’s development,” said Sergey Mikhailov, CEO of Cherkizovo Group.
“For that reason, the acquisition of “Pit-Product”, one of the most technologically advanced processing facilities in the North-West Federal District, will significantly reinforce our positions in such an important and big market. The transaction will also contribute to further increase of sales in the foodservice channel.”
The final purchase price will be determined at the closing of the transaction.
The sale does not include Atria Russia’s subsidiary Sibylla Rus.
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