Finland's Atria exits Russia with fast food business sale to Cherkizovo

Finland's Atria said on Monday it had sold its fast food business in Russia to Russian meat producer Cherkizovo, exiting the country. Atria said the deal was priced at about 8 million euros ($8.34 million) and the Russian business, Sibylla Rus, accounted for about 2% of the group's total net sales and had been profitable.

Finland's Atria said on Monday it had sold its fast food business in Russia to Russian meat producer Cherkizovo, exiting the country.

Atria said the deal was priced at about 8 million euros ($8.34 million) and the Russian business, Sibylla Rus, accounted for about 2% of the group's total net sales and had been profitable. "There's no buy back option in our agreement with Cherkizovo," finance chief Tomas Back told Reuters in an email.

Atria, which entered Russia in 2005, said it has no remaining assets in the country. 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.

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). Many Western companies have withdrawn from Russia since it invaded Ukraine on Feb. 24, leaving behind assets worth billions of dollars.

Russia calls its actions a "special operation" to disarm Ukraine while Ukraine and the West describe it as an unprovoked act of aggression. ($1 = 0.9595 euros)

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