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Latest headlines

Mergers & Acquisitions

Smithfield Foods to Acquire Dry Sausage Production Facility from Cargill

Smithfield Foods’ logo
June 6, 2024

Smithfield Foods has entered into a definitive agreement to purchase a dry sausage production facility in Nashville, Tennessee, from Cargill. 

The transaction aligns with Smithfield's growth strategy in the value-added packaged meats segment, enhancing its ability to serve growing demand for pepperoni, deli, charcuterie and other dry sausage products. 

The terms of the agreement were not disclosed. Subject to customary closing conditions, the transaction is expected to close by the end of July.

"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,” says Steve France, president of packaged meats, Smithfield Foods. “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.

Smithfield will make formal offers of employment to the approximately 160 active Cargill Nashville employees for the same positions they currently hold, with no changes to their current base pay, and provide a benefits package that includes comprehensive medical coverage, a free-tuition program and other benefits.

KEYWORDS: acquisition Cargill sausage Smithfield Foods

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