Moscow, Russia – July 16, 2020 - PJSC Cherkizovo Group (MOEX: GCHE), the largest vertically integrated meat producer in Russia, announces that it signed a preliminary agreement with Cargill to acquire its chicken processing facility, located in Efremov, the Tula region. 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, commented: “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. 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.”