The transaction, which is subject to approval by the Federal Antimonopoly Service of the Russian Federation, is set to increase the company’s share among domestic poultry producers by 12%.
The final purchase amount will be determined by the parties and the transaction completed after due diligence of the acquired company.
Cherkizovo said the acquisition would significantly expand the scale of the group’s operations.
Altai Broiler, which produced around 67,000 tonnes of poultry during 2017, is part of the Prioskolie holding group and is the largest producer of poultry meat in Siberia and the Altai region.
The main activity of the company is the production and sale of chicken broilers, semi-finished products and by-products in frozen and chilled form to Siberian retail chains.
The company has a poultry complex with an open production cycle, which includes a hatchery, a feed mill and four broiler fattening sites, located in the Zonal District of the Altai Territory, as well as a poultry slaughter and processing plant in Biysk.
Cherkizovo is ramping up its position in the Russian meat market after recently investing RUB7 billion (US$115m) to extend its meat processing capacity in Moscow, as well as finishing construction at a plant in Kashira, Moscow Oblast.