Welcome!

News Feed Item

Cherkizovo acquired LISKO Broiler

MOSCOW, RUSSIA -- (Marketwired) -- 03/26/14 --


             Cherkizovo Group Acquired LISKO Broiler,

         one of the country's largest poultry producers


    Cherkizovo Group (LSE: CHE), Russia's largest meat and fodder producer,
announces the acquisition of LISKO Broiler, a poultry producer in the
Voronezh
Region in Southern Russia. The acquisition will make Cherkizovo Group the
country's largest poultry producer, with production capacity exceeding half
a
million tonnes live weight per year*. APK Mikhailovsky LLC, which is a part
of
the Cherkizovo Group, acted as a buyer. The deal was approved by the
Federal
Antimonopoly Service.

    LISKO Broiler is the largest poultry producer in the Voronezh Region
and one of the market leaders in the Central and Southern Federal
Districts. Based on Russian Poultry Union data, LISKO ranks seventh
among top poultry producers with a 2% nationwide market share. Its
production capacity is approximately 95,000 tonnes (live weight) per
year.

    LISKO's full-cycle production assets that will be integrated to
Cherkizovo Group include:

     - 7 poultry production facilities;

     - 4 parent flock sites with a slaughtering facility of 4000 heads
per hour;

     - 2 reproduction flock sites;

     - Slaughtering complex with capacity of 9000 heads per hour;

     - Hatchery with capacity of 80 million eggs per year;

     - Feed mill with 40 tonnes per hour capacity;

     - Grain storage facility with overall storage capacity of 100,000
tonnes;

     - Meat and bone meal production facility;

     - Rendering facility

     It is worth mentioning that all LISKO production facilities are
built in accordance with modern standards and are highly efficient."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 not only 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", Cherkizovo
CEO Sergei Mikhailov said in commenting on the deal.


Terms of the Deal:

     The deal is based on an enterprise value of approximately RUR 5
billion for LISKO Broiler, including debt. Cherkizovo Group will assume
the acquired company's debt; equity will be financed through the
company's own funds. The deal was made at a 4.8 EV/EBITDA ratio,
based on the 2014 earnings forecast*.

     Sberbank CIB acted as the financial advisor for Cherkizovo Group.
Due diligence was carried out by Ernst and Young and Hannes Snellman.
Hannes Snellman acted as legal consultants on the deal.

About Cherkizovo Group

Cherkizovo Group (LSE: CHE) is the largest meat manufacturer in Russia
and one of the top three companies serving Russia's poultry, pork, and
meat processing markets. The company is also Russia's largest producer
of fodder.

The Group includes 8 full cycle poultry production facilities, with
atotal capacity of 550,000 tonnes live weight p.a.; 14 modern pork
production facilities with a total capacity of 180,000 tonnes live
weight p.a.; 6 meat processing plants with a total capacity of 158,000
tonnes p.a.; 6 fodder plants with atotal capacity of 1.4 million
tonnes p.a.; grain storage facilities with anoverall storage capacity
exceeding 500,000 tonnes; and a land bank exceeding 100,000 hectares.
In 2013, Cherkizovo produced more than half a million tonnes of meat
products.

Due to its vertically integrated structure, which includes agricultural
land, grain storage facilities, feed production, livestock breeding,
growing and slaughtering, as well as meat processing and integrated
distribution, Cherkizovo has consistently delivered sustainable revenue
and profit growth. In 2013, Cherkizovo's consolidated revenue was more
than USD 1.6 billion.

Within the last five years alone, Cherkizovo Group has invested more
than USD 1 billion into the development of Russia's agriculture sector.

Cherkizovo Group's strategy includes organic growth and investment
in new projects, driving the consolidation of the Russian meat market.
Cherkizovo shares are quoted on LSE and RTS/MICEX




*Cherkizovo Group management estimates for 2014
                    This information is provided by RNS
          The company news service from the London Stock Exchange

END

Contacts:
RNS
Customer
Services
0044-207797-4400
Email Contact
http://www.rns.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across supply chain networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost and time for product recall as well as advance trade. Are you curious about Blockchain and how it can provide you with new opportunities for innovation and growth? In her session at 20th Cloud Exp...
The goal of Continuous Testing is to shift testing left to find defects earlier and release software faster. This can be achieved by integrating a set of open source functional and performance testing tools in the early stages of your software delivery lifecycle. There is one process that binds all application delivery stages together into one well-orchestrated machine: Continuous Testing. Continuous Testing is the conveyor belt between the Software Factory and production stages. Artifacts are ...
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Back in February of 2017, Andrew Clay Schafer of Pivotal tweeted the following: “seriously tho, the whole software industry is stuck on deployment when we desperately need architecture and telemetry.” Intrigue in a 140 characters. For me, I hear Andrew saying, “we’re jumping to step 5 before we’ve successfully completed steps 1-4.”
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...