Smithfield Foods, an American food company with a key position in packaged meats and fresh pork products, has entered into a definitive agreement to purchase a dry sausage production facility in Nashville, Tennessee, from Cargill.
The transaction will fuel Smithfield’s strategy of continued growth in the value-added packaged meats segment, enhancing its ability to serve growing demand for high-quality pepperoni, deli, charcuterie and other dry sausage products.
The terms of the agreement were not disclosed. The transaction is expected to close by the end of July 2024 and is subject to customary closing conditions.
Steve France, president of packaged meats for Smithfield Foods, said: “This transaction is a testament to our continued focus on growing our packaged meats business by staying ahead of and delivering on our customers’ preferences.
“Dry sausage is one of our fastest-growing categories, and acquiring this facility from Cargill will better position us to improve sales, drive volume and increase our capacity to bring high-quality dry sausage products to the foodservice, industrial and retail sectors. We look forward to serving this facility’s existing customers and welcoming a new group of team members to Smithfield Foods.”
Production from the Nashville facility will support Smithfield’s existing portfolio of dry sausage brands, including Margherita, Carando and Armour, adding dry sausage production capacity of 50 million pounds per year.