Russian meat producer Cherkizovo Group has signed a preliminary agreement with Cargill to acquire its chicken processing facility in the Tula region, Russia, for an undisclosed sum.
Established in 1974, Cherkizovo claims that it is the largest consumer-centric manufacturer of meat products in Russia.
Located in Efremov, in the southern part of the Tula region, the acquisition will help expand Cherkizovo’s presence among clients in the foodservice sector.
Cargill operates six plants on its industrial site in Efremov, which produce starch and sweeteners, feed and premixes, oils and chicken products.
“We are excited to add another asset aimed to foodservice clients to our portfolio,” said Sergey Mikhailov, Cherkizovo’s CEO.
He added: “Being a vertically integrated meat producer, we see significant synergies of a newly acquired plant with our existing supply chain, and have plans to increase capacity at this particular plant over time.
“This acquisition fits well with our strategic plans to increase our share of value-added products and broaden our presence with foodservice clientele, transforming this channel into a significant revenue stream for the company.”
The deal, following regulatory approval from respective Russian authorities, is expected to close in a few months.
Last year, Cherkizovo agreed to acquire a 75% stake in Samson – Food Products (SFP) for approximately RUB 350 million (€4.4 million). SFP produces and sells meat products such as sausages in Saint Petersburg and Russia’s north-west federal district (NWFD) under the Samson, Grillmania, Fileya brands, among others.
© FoodBev Media Ltd 2021
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