CJ CheilJedang said Thursday that it has completed the acquisition of Russian frozen food company Ravioli, setting the foundation for a two-track strategy in the Russian market.
The Korean company acquired a 100 percent stake in Ravioli for 30 billion won ($27 million). Ravioli, first established in 1994, is known for making Russian dumplings called pelmeni. Its revenues last year reached 45 billion won. Following the acquisition, Ravioli has been renamed CJ Raviollo Rus, according to CJ CheilJedang.
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CJ CheilJedang Vice President Kang Shin-ho gives a congratulatory address after the acquisition of Ravioli at the Crown Plaza Hotel in St. Petersburg, Russia. (CJ CheilJedang) |
CJ CheilJedang said that it will be using the acquisition to pursue a two-track strategy in Russia, offering its own Bibigo Royal Court Dumplings as well as products specialized for the Russian market.
The company will be investing more than 13 billion won over the next two years in production equipment and infrastructure. Eventually, CJ CheilJedang hopes to expand its reach beyond St. Petersburg, where Ravioli held regional production and sales infrastructure.
CJ CheilJedang hopes to reach 200 billion won in sales in Russia by 2020, according to the company.
By Won Ho-jung (
hjwon@heraldcorp.com)
