Wiki Spanish Food editorial team
Grupo Fuertes has increased its stake in Russian agri-food holding company Grupo Cherkizovo to 5.06% after acquiring shares on the London Stock Exchange. Its stake is worth an estimated 30 million dollars, according to the company's current market price.
The two groups have had a strategic alliance since 2012, when they launched a major project together to produce and sell turkey in Russia called Tambovskaia Indeika, which is expected to become the largest in the country when construction is completed next year.
Grupo Fuertes has become a leader in mass market products as it comprises a powerful group of agri-food companies and has annual revenues of over 1.4 billion euros. The holding company Grupo Cherkizovo obtained 1.8 billion dollars in revenues last year.
Sergey Mikhailov, CEO of Grupo Cherkizovo, said he was pleased with "the acquisition of a substantial portion of our company by a long-term strategic partner at a time when other Western companies are cautious about future growth in Russia". He added that the company is “the largest vertically integrated farm in Russia and a leader in innovation and efficiency".
Tomás Fuertes, Chairman of Grupo Fuertes, said: “A decade ago, we started searching for a strategic partner in Russia, and four years ago we chose Grupo Cherkizovo to jointly develop a project because we're on the same page in terms of long-term goals and aspects such as leadership, quality, transparency and modernization. Additionally, we both started out as small family-run businesses with strong traditional values and a passion for agriculture. We are certain that Russia's farming sector is becoming an economic driver, and Grupo Cherkizovo is a powerful, reliable partner with which we are ready to become leaders in turkey production in Russia".