Cherkizovo Group acquires LISKO Broiler company

By Georgi Gyton

- Last updated on GMT

Cherkiziovo set to become country's largest poultry producer
Cherkiziovo set to become country's largest poultry producer

Related tags: Russia, Poultry farming, Poultry

Russian meat and fodder producer Cherkizovo Group has acquired poultry producer LISKO Broiler for approximately RUB5bn ($140m), in what has been touted as a significant event in the Russian meat industry.

The acquisition will see Cherkizovo become the country’s largest poultry producer, with a production capacity exceeding half a million tonnes (liveweight) per year.

LISKO Broiler, based in the Voronezh Region in Southern Russia, is the largest poultry producer in the region, and one of the market leaders in the Central and Southern Federal Districts.

According to data from the Russian Poultry Union, it holds a 2% share of the national market, with a production capacity of approximately 95,000 tonnes (liveweight) per year.

Its production assets will be integrated in the Cherkizovo Group, including seven poultry production facilities, four parent flock sites with a slaughtering facility, two reproduction flock sites, and a slaughtering complex with the capacity for 9,000 heads per hour.

Sergei Mikhailov, chief executive, Cherkizovo, said: "We have made a major step towards market leadership, which is in line with our long-term strategy combining organic growth and M&A. Acquisition of LISKO gives us strategic advantages, such as increasing the scale of our business and access to Southern Russian markets, including a synergy effect that we will feel even in the first year of integration.

"LISKO’s facilities are located in Voronezh Region, where Cherkizovo has a land bank, and this gives us an opportunity to build a vertical integration chain. Leveraging on Cherkizovo’s distribution capabilities will help to increase market access for LISKO’s products and save on logistics. We have acquired a quality asset at a price below the replacement value, and I am sure this deal will be beneficial for both our shareholders and customers."

The deal has been approved by the Federal Antimonopoly Service.

Related topics: Meat

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