Smithfield Foods to Purchase Cargill Facility

Smithfield Foods has entered into a definitive agreement to purchase a premier dry sausage production facility 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.

Production from the Nashville, TN, 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.

"... 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," said Steve France, president of packaged meats for Smithfield Foods.

Smithfield will make formal offers of employment to approximately 160 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.

The transaction is expected to close by the end of July 2024.