Trimming the fat of one’s operations is par for the course when it comes to maintaining a lean, mean, market-amassing machine. For Cargill, it most recently sold its chicken processing facility in Tula, Russia, to Russian meat producer, Cherkizovo Group. The buyer will ultimately acquire Cargill's Сompass Foods, a deal that better allows the company to supply its foodservice clientele.
“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.
According to a press release, Cherkizovo Group and Cargill signed a preliminary agreement in July of this year. The agreement was later approved by the Russian Federal Antimonopoly Service.
The bulk of Compass Foods’ products goes to McDonald’s fast food restaurant chain.
“McDonald’s has been consistently expanding its network of domestic suppliers. 99 percent 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 and Logistics Manager at McDonald's.
Stay tuned for the latest deals, sales, and more in the specialty food world.
