RUSSIA, Moscow. Cherkizovo Group, the largest vertically integrated meat producer in Russia according to the company, announces that it signed a preliminary agreement with Cargill to acquire its chicken processing facility, located in Efremov, the Tula region.
Cargill operates six plants on its industrial site in Efremov, which produce starch and sweeteners, feed and premixes, oils and chicken products. The deal, following regulatory approval from respective Russian authorities, is expected to close in a few months.
The move will help the company to increase its share of value-added products and expand its presence among clients in the foodservice sector, which Cherkizovo’s CEO, Sergey Mikhailov, confirms in his statements: “We are excited to add another asset aimed to foodservice clients to our portfolio. 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.”