Atria Plc COMPANY ANNOUNCEMENT 31 July 2008, 5.00 am
ATRIA TO EXPAND TO MOSCOW AND ACQUIRE MEAT PROCESSING COMPANY OOO CAMPOMOS
Atria will expand its operations in Russia by acquiring meat processing company
OOO Campomos operating in the Moscow and St Petersburg regions. The main
products of Campomos include meat products and pizzas. It is also planning to
add consumer-packed meat to its product portfolio. Campomos has a production
plant and logistics centre in Moscow and a distribution center in St Petersburg.
In addition, the company owns a pork breeding facility with 2,500 sows. The main
market of Campomos is Moscow, but it is also well-established in St Petersburg
and some other major cities. In 2007, Campomos reported net sales of around EUR
75 million. The strong financial performance in the beginning of the millennium
has shown a declining development and the company has been loss-making in recent
years. The company's production equipment is modern and well maintained.
Through this acquisition, Atria will obtain a significant share of modern retail
trade in the Moscow region and strengthen its market leadership in St
Petersburg. Founded in 1989, Campomos employs some 1,000 staff. More than half
of the sales comes from the Moscow region and the rest from St Petersburg and
other major cities. Campomos is the subsidiary of Campofrio Alimentacion S.A., a
Spanish publicly quoted company. It was the first Western meat processing
company established in Russia.
The company's main brand is KampoMos, which is widely established in Russia. The
KampoMos frankfurters, in particular, are a well-known product. The company also
offers a variety of premium-class meat products. In recent years, Campomos has
diversified into convenience foods and service desk products.
The company has a well-functioning distribution network in both Moscow and St
Petersburg. In Moscow, products are delivered from the logistics centre
adjoining the plant straight to retail shops using the company's own fleet of
trucks. The location of the Moscow plant is excellent in terms of connections,
as it is in the vicinity of a ring road.
Meat raw material is sourced from Russia and the global markets. The company
also has a pork breeding facility with 2,500 sows, plus its own and rented
agricultural land. This year, the company has invested heavily in the
development of primary production.
The more than 17-million strong customer base in the Moscow region and the rapid
growth of modern retail sales combined with the widely known, high-quality
products of Campomos will help Atria establish a firm foothold in the steadily
growing Moscow market.
The closing of the deal is subject to the approval of the Russian competition
authorities. Atria estimates that Campomos will be consolidated starting 1
October 2008. The transaction's enterprise value is approx. EUR 75 million.
For additional information, please contact Mr Matti Tikkakoski, President and
CEO, tel. +358 50 2582.
ATRIA PLC
Matti Tikkakoski
President and CEO
DISTRIBUTION
Helsinki Stock Exchange
Principal media
www.atria.fi