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Less than two weeks after Cherkizovo acquired egg production company JSC Bashkir Poultry Farm, it reached an agreement to divest of it.
Cherkizovo, a Russian agrifood company whose primary markets include meat, poultry meat and grain, announced that since Bashkir Poultry Farm specializes in marketable eggs production, which is not in line with Cherkizovo business profile. Hence, the company decided to sell this asset and quickly found the buyer.
Cherkizovo became the owner of Bashkir Poultry Farm with the acquisition of assets from Russian Grain Ufa for RUB6.37 billion (US$101.3 million) in an auction on December 5. That acquisition also included meat processing facilities, a feed mill, and agricultural land.
But on December 15, AIC Mikhailovsky, part of Cherkizovo Group, signed an agreement to sell 100 % of JSC Bashkir Poultry Farm to Agricultural Asset Management LLC. The deal was closed for a total cash consideration of RUB2 billion.
JSC Bashkir Poultry Farm had been acquired by Cherkizovo Group on December 8 along with other assets of Russian Grain Ufa, the largest poultry producer in Bashkortostan. Cherkizovo Group won an open auction for all of the seller’s assets: poultry farms, meat processing facilities, a feed mill, and agricultural land.
Bashkir Poultry Farm, according to Cherkizovo, is the leading supplier of marketable eggs in the region with an annual capacity reaches 750 million eggs. The poultry farm’s products are sold across 13 Russian regions in the Volga, Urals, Central, and Southern Federal Districts.
Cherkizovo, which as a poultry producer ranks eighth in Europe and 31st in the world, will remain in the broiler and turkey industries. According to the WATTPoultry International Top Companies survey, Cherkizovo slaughtered 322.4 million broilers during the past year.
Roy Graber is a senior reporter at WATT Global Media. Contact Graber via email at rgraber@wattglobal.com.
Cherkizovo sells Bashkir Poultry Farm egg business – WATTAgNet Industry News & Trends
