Cherkizovo Group, the largest vertically integrated meat producer in Russia, is acquiring a chicken processing facility from Cargill for an undisclosed sum.
The facility is based in Efremov, the Tula region, and will see the Group expand its processing capacity.
“We are excited to add another asset aimed to foodservice clients to our portfolio,” said Cherkizovo’s CEO, Sergey Mikhailov.
“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 is subject to regulatory approval from respective Russian authorities and, if approved, is expected to close in a few months.