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

15.2.2021 16:30

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.

Juha Gröhn

Nasdaq Helsinki Oy
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