Atria: Post-acquisition Managment Solutions for the Russian Subsidiary

Abstract

In 2005, Finland-based Atria entered the Russian industry by acquiring St Petersburg-based Pit-Product which is now a subsidiary of Atria Plc. Established in 1996, Pit-Product is the largest meat processing company in St Petersburg and surroundings. The company currently operates two production plants with over 1500 employees. Later Atria implemented several new projects in Russia (a green-field plant in Gorelovo, Leningrad Region, the acquisition Moscow-based Campomos, and some other projects). This case describes the activities Atria undertook in Russia, emphasising the post-acquisition integration of Russian operations into the overall Atria strategy. It includes the description of the pre-acquisition situation and arguments in favour of Atria’s Russian expansion (target country characteristics, industry statement and competition, degree of consolidation in the industry); the process of selecting an internationalisation mode (foreign operation mode), the terms of the acquisitions and of Atria’s other deals in Russia; the benefits of the Russian expansion for Atria Group; the situation that emerged at Pit-Product and other Atria divisions in Russia and post-acquisition solutions (defining a role for each division of Atria in Russia, establishing an integration and co-ordination links, designing a control system, changes in organisation structure, operations, marketing, HR and financial policies in the Russian divisions, etc).