Cherkizovo Group, the largest vertically integrated meat producer in Russia, recently announced that it has signed a preliminary agreement with Cargill to acquire its chicken processing facility in Efremov, Russia. The deal is subject to regulatory approval from respective Russian authorities and, if approved, is expected to close in a few months.

“We are excited to add another asset aimed to foodservice clients to our portfolio,” Cherkizovo chief executive officer Sergey Mikhailov said. “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.”

The acquisition, he said, fits well with the company’s strategic plans to increase its share of value-added products and to broaden its presence with foodservice clientele, transforming the channel into a significant revenue stream for the company.

Cargill opened the $40 million chicken processing plant in 2013 to supply McDonald’s restaurants in Russia with Chicken McNuggets as well as other chicken products.

The industrial site in Efremov is one of Cargill’s largest locations in Europe. Following the transaction, Cargill will still operate five plants at the site, producing starches, sweeteners, feed, premixes and oils.