SYS-CON MEDIA Authors: Roberto Medrano, Dmitriy Stepanov, Gilad Parann-Nissany, Srinivasan Sundara Rajan, Sean Houghton

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 Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo – to be held June 9-11, 2015, at the Javits Center in New York City, NY – is now accepting Hackathon proposals. Hackathon sponsorship benefits include general brand exposure and increasing engagement with the developer ecosystem. At Cloud Expo 2014 Silicon Valley, IBM held the Bluemix Developer Playground on November 5 and ElasticBox held the DevOps Hackathon on November 6. Both events took place on the expo fl...
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will w...
The term culture has had a polarizing effect among DevOps supporters. Some propose that culture change is critical for success with DevOps, but are remiss to define culture. Some talk about a DevOps culture but then reference activities that could lead to culture change and there are those that talk about culture change as a set of behaviors that need to be adopted by those in IT. There is no question that businesses successful in adopting a DevOps mindset have seen departmental culture change, ...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big D...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, a...
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrateg...
Fundamentally, SDN is still mostly about network plumbing. While plumbing may be useful to tinker with, what you can do with your plumbing is far more intriguing. A rigid interpretation of SDN confines it to Layers 2 and 3, and that's reasonable. But SDN opens opportunities for novel constructions in Layers 4 to 7 that solve real operational problems in data centers. "Data center," in fact, might become anachronistic - data is everywhere, constantly on the move, seemingly always overflowing. Net...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.