July 20, 2020

Cherkizovo to acquire Cargill chicken processing facility in Tula, Russia

PJSC Cherkizovo Group has announced recently that it signed a preliminary agreement with Cargill to acquire its chicken processing facility located in Efremov, the Tula region, Russia.

The deal is subject to regulatory approval from respective Russian authorities and, if approved, is expected to close in a few months.

Cherkizovo's CEO, Sergey Mikhailov, said: "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.

Mikhailov added: "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."

- Cherkizovo