Cargill and Faccenda Foods have agreed to establish a joint venture to create a leading U.K. food company focused on chicken, turkey and duck. The new company will have the capability to respond to changing customer needs in the retail and foodservice sectors, with a strategy for growth. The formation of the joint venture is subject to clearance by the relevant regulatory authorities.
Cargill's fresh chicken business in the U.K. will join Faccenda's fresh chicken, turkey and duck business to form the new company. The new joint venture will be a stand-alone business, with Cargill and Faccenda taking an equal shareholding. It brings together two complementary businesses with a track record of success, shared values and a strong reputation in the U.K. poultry market.
Andy Dawkins, managing director for Faccenda Foods, will be appointed chief executive officer of the newly formed company. Chris Hall, fresh chicken director for Cargill Meats Europe, will be appointed chief commercial officer.
The new business plans to employ approximately 6,000 people in the U.K., with employees coming from both parent companies. It will operate across multiple agriculture and operational centers, with broad capabilities that span the supply chain, focused on operational excellence and customer focused partnerships.
"We believe the two organizations 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," explained Chris Langholz, president of Cargill Poultry.
Ian Faccenda, CEO of Faccenda Investments, said, "Both Cargill and Faccenda are recognized 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."
Separate from this joint venture, Cargill said it will continue to process and sell cooked poultry products in Balliol, Wolverhampton, as well as operate its poultry import, trading and distribution business. Cargill will also continue to operate its European poultry businesses in France, Russia and the Netherlands. Faccenda will retain its shareholding in Dartmouth Foods.
The name of the new joint venture will be announced at the closing of the deal.
"This is an exciting time," 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."