Cargill said on 2 May that it has agreed to sell its Dressing, Sauces and Mayonnaise (DSM) business to Ventura Foods, with completion of the transaction expected in the second quarter of 2016.
Currently the DSM business operates from a standalone facility in Florida and two facilities integrated within Cargill’s broader operations in Georgia and Ohio.
In the acquisition of Cargill’s DSM business would be the Florida facility, and the DSM assets from the Georgia and Ohio facilities – which would be relocated to Ventura Foods’ own facilities in Pennsylvania and Texas.
Contract manufacturing facilities would be provided by Cargill to Ventura Foods for 15-18 months to ensure a smooth transition.
Cargill said, “The sale of our DSM business will allow us to operate more efficiently, and bring more and better offerings and services of our customers”.
Ventura Foods produces custom and proprietary dressings, sauces, mayonnaises, oils and other flavourings. President and CEO Chris Furan said the acquisition would add “greater depth to our already strong capabilities and another platform for innovation”.