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CP Foods: Takeover of Russian meat plant nearly done


13 April 2017
Fleischwirtschaft International

Talks to acquire a top Russian meat factory, the Ostankino Meat Processing Plant (OMPP), could be concluded by Thailand's CP Foods arm Charoen Pokphand Foods (overseas) LLC (CP Foods) next month.

A spokesman for Charoen Pokphand Group Russia confirmed that the potential deal could cost CP Foods $150 to $200 mill. The deal would be part of recently announced plans by CP Foods parent, Charoen Pokphand Group, to establish a food supply chain in Russia from farm to final processing and manufacture. A CP Russia spokesman for Charoen Pokphand Group Russia confirmed that the talks were ongoing, but that no final decision on terms had yet been taken.

In the meantime, representatives of OMPP declined to comment, saying only that CP Foods was not the only bidder for the company, which is a key pigmeat producer. An official spokesman for Alexander Tkachev, Russia’s agriculture minister, welcomed the prospect of a deal, which he predicted would lead to significant investment in the Russian meat processing industry.

OMPP sells more than 100 different products under the brands of Ostankino and Papa Mozhet. The company operates pig complexes in the Moscow and Smolensk regions, with a total capacity of 45,000 t of pork per year. It also has a more general plant in Moscow producing sausages, frankfurters, wieners, hams and chilled meat.

OMPP’s declared sales in 2015 by volume were 190,000 t of meat products, with revenues of $627 mill., with profits of $13.88 mill. The company is owned by its founder and CEO Mikhail Popov. Currently, the company holds up to 5% of the Russian meat processing market.

In addition to growing its Russian pork business, in 2015, CP Group purchased two poult ry units near St Petersburg, able to produce 180,000 t of chicken meat annually.

1 680.0 mln
Moscow, Kaliningrad, Leningrad, Lipetsk, Nizhniy Novgorod, Kursk, Ryazan region

Investor profile

Charoen Pokphand Foods Plc.

Thailand

Company's website: www.cpfworldwide.com/th/

T: +66 (0) 2625 8000

Public company

E-mail: iroffice@cpf.co.th

Contact: Mr. Adirek Sripratak, CEO

Charoen Pokphand Foods is one of the largest producers, processors and exporters of meat in South-East Asia and one of the world’s leading manufacturer of animal feed. The company manages a number of animal feed plants and produces feed for poultry, swine, shrimp, fish, as well as home pets (cats and dogs), not only in Thailand, but also in Cambodia, China, India, Indonesia, Malaysia, Burma, Singapore, Turkey, Taiwan, USA and Vietnam.

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