Smithfield Foods, a leading American food company in packaged meats and fresh pork products, has entered into a definitive agreement to purchase a premier dry sausage production facility in Nashville, Tennessee, from Cargill. This acquisition aligns with Smithfield’s strategy to expand its value-added packaged meats segment and meet the growing demand for high-quality pepperoni, deli, charcuterie, and other dry sausage products.
The financial terms of the agreement were not disclosed. The transaction is expected to close by the end of July 2024, pending customary closing conditions.
“This transaction underscores our commitment to growing our packaged meats business by anticipating and fulfilling our customers’ preferences. Dry sausage is one of our fastest-growing categories, and acquiring this facility from Cargill will strengthen our ability to improve sales, drive volume, and increase our capacity to supply high-quality dry sausage products to the foodservice, industrial, and retail sectors,” said Steve France, president of packaged meats for Smithfield Foods. “We look forward to serving this facility’s existing customers and welcoming a new group of team members to Smithfield Foods,” France added.
The Nashville facility will support Smithfield’s existing dry sausage brands, including Margherita, Carando, and Armour, adding an annual production capacity of 50 million pounds. The U.S. retail/deli dry sausage segment is projected to grow from $4.7 billion in 2023 to $6.9 billion by 2030. In the foodservice segment, 65% of pizzeria operators anticipate an increase in gross annual sales over the next 12 months, with 44% expecting sales to rise by 5% or more.
Smithfield will extend formal employment offers to the approximately 160 active Cargill Nashville employees for the same positions they currently hold, with no changes to their current base pay. The benefits package includes comprehensive medical coverage, a free-tuition program, and other benefits.
