Smithfield Foods, a prominent US pork manufacturer, is set to acquire a dry sausage production facility from Cargill, a major player in the agri-food industry. The undisclosed financial details of the deal reflect Smithfield’s strategic move towards strengthening its position in the value-added packaged meats segment. The facility located in Nashville, Tennessee, will support Smithfield’s dry sausage brands, including Margherita, Carando, and Armour, by adding a capacity of 50 million pounds per year.
Owned by China’s WH Group, Smithfield plans to retain approximately 160 active Cargill employees by offering them formal employment with no changes in their current pay and inclusive benefits package. The acquisition is expected to close by the end of July, marking a significant development in Smithfield’s growth trajectory in the food and beverage industry.
“This transaction underscores our commitment to expanding our packaged meats business, meeting our customers’ preferences, and enhancing our presence in the market,” stated Steve France, the president of packaged meats at Smithfield. “Dry sausage remains a high-growth category for us, and acquiring this facility from Cargill will enable us to boost sales, drive volume, and cater to various sectors, including foodservice, industrial, and retail.”
France continued, expressing enthusiasm about serving the facility’s existing clientele and integrating new team members into the Smithfield Foods family. Meanwhile, Cargill recently divested two meat processing plants, with Central Valley Meats acquiring a beef processing plant in California. This strategic shift aligns with both companies’ efforts to streamline operations and focus on core business areas within the competitive food and beverage industry.
Overall, the acquisition of the dry sausage production facility signifies Smithfield’s ongoing commitment to innovation, growth, and customer satisfaction in the ever-evolving food and drink business landscape. By leveraging synergies and expertise, Smithfield is poised to further solidify its market position and cater to the evolving consumer trends within the industry.
