Ventura Foods has agreed to acquire Cargill’s dressings, sauces and mayonnaise (DSM) business for an undisclosed sum.
Ventura Foods president and CEO Chris Furman said: "The acquisition of Cargill's DSM business is a strong fit for Ventura Foods' strategy to grow, strengthen and diversify. It further strengthens our innovation platform and leadership in consumer taste and preference trends."
The DSM business is expected to strengthen Ventura Foods' portfolio of custom dressings, sauces and mayonnaise categories.
The purchase also includes Cargill's DSM facility in Port St. Lucie, Florida and most of DSM manufacturing equipment at Gainesville, Georgia and Sidney, Ohio facilities.
Ventura Foods will offer alternate employment to the 46 employees at the Port St. Lucie facility.
The DSM equipment and business at Gainesville and Sidney will be moved to Ventura Foods' facilities in Chambersburg, Pennsylvania, and Fort Worth, Texas.
Cargill will provide manufacturing services contract for 15-18 months to Ventura Foods for smooth transition and customer convenience.
Cargill will continue to manufacture and sell a range of oil and shortenings products used in several applications ranging from cookies to crackers, to retail brand cooking oils and zero trans-fat frying oils, which are used by quick-service restaurants.
The deal is expected to be completed in the second quarter of 2016.
Ventura Foods is a producer of custom and proprietary dressings, sauces, mayonnaises, oils and other flavorings.
Its customers include foodservice companies, restaurants and retailers. addition Besides, its consumer brands are available at retail include Marie's dressings, LouAna oils, Dean's dips and Gold n' Soft spreads.