Faccenda Foods and Cargill are to establish a joint venture incorporating the production of chicken, turkey and duck in the UK.
The move will see Cargill’s fresh chicken operation joining with Faccenda’s production, and the combined entity forming a new company.
That new company will be a standalone operation with the 2 parties having an equal shareholding.
Faccenda’s managing director Andy Dawkins is to be appointed chief executive of the new company, while Chris Hall, Cargill’s fresh chicken director, will be chief operating officer.
The deal will likely be scrutinised by competition authorities as it consolidates further the number of major players in British poultry production.
Some 6,000 employees from the 2 businesses will be transferred to the new company.
One exception is Cargill’s Balliol site, Wolverhampton, which will continue to process and sell cooked poultry products, as well as operate its import, trading and distribution business. Cargill said its poultry production on mainland Europe would not be affected.
Chris Langholz, president of Cargill Poultry said: “We believe the 2 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.”
Ian Faccenda, chief executive officer at Faccenda Investments, added: “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.”
“This is an exciting time,” Mr Faccenda added. “We are bringing together talented people from both businesses with complementary values and expertise, and giving them the opportunity to develop and be successful in a new business with the capability to grow.”