EFREMOV, RUSSIA – The Cherkizovo Group, a leading Russian food company specializing in poultry and pork production and processing, recently signed a preliminary agreement to acquire a poultry processing plant from Cargill in Efremov in the Tula region of Russia.
Transaction details were not disclosed, but the deal is subject to regulatory approval from Russian authorities and, if approved, is expected to close in a few months.
“We are excited to add another asset aimed to foodservice clients to our portfolio,” said Sergey Mikhailov, chief executive officer of Cherkizovo. “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.”
Cargill opened the Efremov poultry plant in 2013 at a cost of $40 million. The facility served as a supplier of Chicken McNuggets and other chicken products to McDonald’s restaurants in Russia. At the time, more than 140 people worked at the facility, which has the capacity to produce 18,000 tonnes per year of further processed chicken products. Cargill’s operations in Efremov also include a corn and wheat sweeteners facility, a vegetable oil refinery and bottle plant, a malt plant and an animal feed mill.