Cherkizovo Group (MOEX: GCHE), Russia's largest meat producer, has announced that it completed the acquisition of Cargill’s chicken processing facility in the Tula region.
AIC Mikhailovsky, part of Cherkizovo Group, closed the deal to acquire Сompass Foods LLC (based in Efremov, Tula region) from Cargill. As a result, the Group took over a chicken processing facility with a capacity of some 20,000 tonnes of nuggets and other poultry products per year. The bulk of its products goes to McDonald’s fast food restaurant chain. The acquisition is set to greatly enhance Cherkizovo’s presence with food service clientele.
In July 2020, Cherkizovo Group and Cargill signed a preliminary agreement, which was later approved by the Russian Federal Antimonopoly Service.
“We are happy that the deal was closed on time, thanks to great efforts and professionalism of Cherkizovo and Cargill teams. We believe that the new asset will be integrated into the Group in a matter of months. I am confident that the experience and expertise of the newly acquired team will bring in additional HoReCa competencies, which we seek to expand as one of our top priorities,” said Sergey Mikhailov, CEO of Cherkizovo Group.
“McDonald’s has been consistently expanding its network of domestic suppliers. 99% of our products are sourced locally. We are happy to see Cherkizovo Group embracing additional opportunities through our partnership. This integration will foster further market development,” said Sergey Kapkov, Senior Purchasing & Logistics Manager at McDonald's.