Finland's Atria sells fast food business in Russia to Cherkizovo (updated)
16/05/2022 11:00
(Adds details)
May 16 (Reuters) - Finland's Atria ATRAV.HE said on Monday
it had sold its fast food business in Russia, Sibylla Rus, to
Russian meat producer Cherkizovo GCHE.MM for about 8 million
euros ($8.34 million).
Atria said the Russian business accounted for about 2% of
the group's total net sales and had been profitable.
The Finnish company said it would record a capital gain of
about 2 million euros from the divestment and a translation loss
of about 10 million euros.
The translation loss is recognised in earnings before
interest and taxes (EBIT), but it has no effect on the group's
equity or cash flow, Atria said.
It had said in March it would exit its fast food business in
Russia, after selling its industrial subsidiary in April 2021.
urn:newsml:reuters.com:*:nFWN2VA0IV
Cherkizovo said the deal included 4,400 fast-food shops in
Russia and former members of the Soviet Union, equipment and
recipes, but excluded rights to the Sibylla trademark.
The Russian company, one of the biggest meat producers in
the country, said the deal was in line with its strategy to
boost its presence in food service business.
The deal has received a preliminary nod from Russia's
Federal Antimonopoly Service (FAS).
($1 = 0.9595 euros)
(Reporting by Andrey Sychev in Gdansk, Poland; Editing by Jason
Neely and Edmund Blair)
((andrey.sychev2@thomsonreuters.com;))