Atria to expand to Moscow and acquire meat processing company OOO Campomos

31.7.2008 05:01
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                                                               
Helsinki Stock Exchange                                                         
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