Agribusiness giant Cargill has agreed to merge its fresh chicken business in the UK with Faccenda Foods’ fresh chicken, turkey and duck operations to create a new food firm.
The parties will establish a fresh poultry joint venture whose name will be revealed at the closing of the deal.
According to the partners, the new company will be able to address the varying requirements of customers in the retail and food service segments with a strategy for growth.
It will be operated independently with Cargill and the UK-based chicken processing company Faccenda holding 50% stake each.
Cargill Poultry president Chris Langholz said: “We believe the two organisations are complementary. Combining into one entity allows us to build on our strengths, grow in the market and better serve our customers.
“The venture will facilitate greater opportunities to innovate and deliver new and exciting poultry products for consumers.”
The Cargill-Faccenda poultry joint venture is expected to recruit around 6,000 people in the UK from existing employees of the two parent companies.
It will have its operations in various agriculture and operational centres and is expected to have a range of capabilities spanning the supply chain.
Faccenda Investments CEO Ian Faccenda said: “Both Cargill and Faccenda are recognised today by their customers for their high standards and great service.
“The new joint venture confirms our long-term commitment to being a responsible partner across the entire supply chain, providing stability and security to our customers, suppliers and growers for years to come.”
Irrespective of the joint venture, UK Cargill will continue its poultry processing and selling of cooked poultry products in Balliol, Wolverhampton. It will also handle its poultry import, trading and distribution business.
Cargill will also continue to operate its poultry businesses in France, Russia and the Netherlands.
Faccenda, on the other hand, will retain its stake in Dartmouth Foods after the formation of the joint venture with Cargill.
The joint venture would need approval from the relevant regulatory authorities before it can be established formally.
