Atria Oyj — M&A Activity 2021

Feb 15, 2021

Atria has entered into an agreement for the sale of its Russian subsidiary OOO Pit-Product

Atria has entered into an agreement for the sale of its Russian subsidiary OOO Pit-Product

Atria Plc, Company announcement, 15 February 2021, 4.30 pm
Atria has entered into an agreement for the sale of its Russian subsidiary OOO
Pit-Product
Atria has investigated various options for developing its Russian business. As a
result of this investigation, Atria has today entered into an agreement to sell
its Russian subsidiary OOO Pit-Product to Limited Liability Company Agricultural
Complex Mikhailovskiy, member of the Cherkizovo Group. Cherkizovo is Russia's
largest manufacturer of meat products and has been listed on the Moscow Stock
Exchange since 2006.
OOO Pit-Product is a wholly owned subsidiary. Atria has owned the company since
2005. At the end of 2020, the company had approximately 700 employees. The
company produces food products for the retail and Food Service channels and owns
the Gorelovo and Sinyavino plants. The sale transaction does not include Atria
Russia's subsidiary Sibylla Rus LLC, which conducts fast food business in
Russia.
The transaction is expected to close during the first half of 2021. The
transaction is subject to the approval of the Russian Competition Authority. The
impact of the divested business on Atria Group's net sales is approximately EUR
35 million. The business has been loss-making.
The amount of accumulated translation differences related to Pit-Product on
December 31, 2020 was EUR
-45 million. The translation difference has arisen from exchange rate changes
during Pit-Product's ownership. Atria acquired Pit-Product in 2005. At that
time, the exchange rate of the Ruble against the euro was about 34 and at the
end of 2020 about 92. Upon divestment of a foreign subsidiary, the accumulated
translation differences related to that subsidiary, presented already earlier in
equity, are recognized in profit or loss. As the accumulated translation
differences already reduce the Group's equity, this entry will not have an
effect on the Group's equity nor cash flow. Translation differences are not
recognized until the final completion of the transaction.
The final purchase price will be determined at the closing of the transaction
and the divestment is not expected to have any other significant effect on the
consolidated result.
For more information, please contact Juha Gröhn, CEO, tel. +358 400 684224.
ATRIA PLC
Juha Gröhn
CEO
DISTRIBUTION:
Nasdaq Helsinki Oy
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