NASHVILLE, Tenn. – Smithfield Foods, Inc., recently entered into an agreement to purchase Cargill, Inc.’s Nashville, Tenn., dry sausage production facility.

“Our planned acquisition of Cargill’s Nashville facility will expand our production capacity, enhancing our ability to serve growing consumer demand for high-quality charcuterie, pizza toppings, deli and other dry sausage products,” Ray Atkinson, Smithfield Foods senior director of external communications, told Farm World.

“The acquisition will complement Smithfield’s existing portfolio of dry sausage brands, including Margherita, Carando and Armor, by adding capacity for the food service segment,” he said.

Company officials said production from the Nashville facility will add dry sausage production capacity of 50 million pounds per year.

The U.S. retail and deli dry sausage segment is projected to grow from $4.7 billion in 2023 to $6.9 by 2030, Smithfield added. In the food service segment, 65 percent of pizzeria operators expect gross annual sales to be up over the next 12 months, with 44 percent expecting sales to be up 5 percent or more.

Chuck Miller, Cargill senior communications manager, media relations and issues response, told Farm World, “With more than 85 years in the pork and food processing industry, Smithfield Foods is well-positioned to take the Nashville operations into the future.”

Company officials said Smithfield will make formal offers of employment to the approximately 160 active Cargill’s 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 approximately 160 employees in Nashville will transition to Smithfield once the sale is final,” Miller said. “Cargill will continue to focus on the long-term growth and production of its cooked crumbles product line from the company’s Columbus, Neb., and Fort Worth, Texas, facilities. This includes cooked items used in prepared foods such as pizza, burritos, soups and hot snacks for our customers.”

While the financial terms of the agreement were not disclosed, the transaction is expected to close by the end of July and is subject to customary closing conditions, company officials 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,” said Steve France, Smithfield Foods president of packaged meats.

“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 food service, industrial and retail sectors,” he added.

He said, “We look forward to serving this facility’s existing customers, and welcoming a new group of team members to Smithfield Foods.