FDBusiness.com

Cherkizovo Group to Acquire NAPKO

 Breaking News
  • Ardgowan Unveils Plans For Inverclyde Distillery Ardgowan Distillery has revealed ambitious designs for its new £12 million distillery which is being built on the Ardgowan Estate near Inverkip, 30 miles west of Glasgow. The plans showcase the flagship building which has just secured revised planning consent from Inverclyde Council. The striking new design, by Michael Laird Architects, brings a number of improvements [...]...
  • HKScan Launches Exports of Finnish Poultry Products to Sweden HKScan, the Nordic food and meat group, has started exporting Finnish poultry products to Sweden. They will initially be sold through the largest retailer ICA’s outlets under the Karinäs®(Kariniemen®) brand. The launch gives Swedish consumers access to a new innovation: high welfare farm-born poultry that is hatched on the farm where it is raised. This new concept is [...]...
  • Almonds Retain Top Spot For Nut Introductions in Europe According to Innova Market Research’s latest Global New Product Introductions Report, almonds retain the number one spot for nut introductions in Europe. With a 47% share of global almond product introductions, the region leads globally for the eleventh year running. Europe as a whole saw a total of 5,017 new introductions with almonds – a [...]...
  • Arla Foods UK Launches New Standards Model to Bring Sustainable Change to Dairy Farming With ongoing volatility in the global milk markets, increasing consumer misunderstanding of the sector, polarised levels of support for UK dairy farmers and a new post-Brexit Agriculture Bill the challenges for dairy farmers are mounting. Farmer-owned co-operative Arla Foods has launched ‘Arla UK 360’ – a new standard in UK dairy farming. The Arla UK 360 [...]...
  • €172 Million to Promote EU Agri-food Products In and Outside the EU The European Commission will provide funding of €172.5 million from the EU agricultural budget to promote EU agri-food products in Europe and across the world. 79 campaigns, covering a wide range of products such as dairy products, olives and olive oil, and fruit and vegetables, will be rolled out over the next three years. Agriculture and [...]...

Cherkizovo Group to Acquire NAPKO

Cherkizovo Group to Acquire NAPKO
April 11
12:13 2017

Cherkizovo Group, the largest vertically integrated meat and feed producer in Russia, is acquiring NAPKO, one of Russia’s leading grain producers.

Among other assets, Cherkizovo Group will acquire NAPKO’s agricultural land of 147,000 hectares located in the Lipetsk, Tambov and Penza regions, which are strategically important areas for Cherkizovo Group. In 2016, NAPKO produced 250,000 tons of grain. Following the acquisition, Cherkziovo Group’s total operating land bank will reach 287,000 hectares. As part of the transaction, the Group will also acquire the supporting production infrastructure to cultivate the land and store the grain.

Sergey Mikhailov, chief executive of Cherkizovo Group, comments: “While organic growth remains our priority, this acquisition represents an excellent example of the strategic M&A opportunities we are ready to explore to further strengthen our vertical integration, supply chain and business model generally. By extending our land bank we will increase our self-sufficiency in grain and focus on synergies and efficiencies to reduce our unit production costs. Following this acquisition, we expect to increase our self-sufficiency in grain to 60% in the next few years from 30% at the end of 2016.”

NAPKO has been one of Cherkizovo Group’s most trusted business partners for a number of years, with the group buying approximately 9-11% of its grain from NAPKO each year. NAPKO’s land bank complements Cherkizovo both in terms of geography and the types of crops cultivated, which include wheat, corn, sunflower and peas. All the acquired assets will be integrated into Cherkizovo’s grain farming segment and NAPKO’s existing management team and employees will be retained.

The acquisition will allow Cherkizovo to reduce its exposure to grain market volatility, including possible grain shortages, local currency volatility and changes to grain suppliers’ pricing policies. NAPKO generates positive cash flow and has a relatively moderate level of debt servicing.

Cherkizovo will pay in cash RUB5 billion (€82 million) for NAPKO’s equity and assume NAPKO’s net debt, which stood at RUB751 million as of March 31, 2017. The transaction is expected to be finalized within the next 30 to 60 days.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 18, 2018Future Food-Tech London - Marketing Partnership
  • October 21, 2018Int'l Food Products Exhibition (Sial)
  • October 25, 2018Italian Espresso Coffee Show (TriestEspresso Expo)
  • October 25, 2018Finnish Food Fair
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements