Food and agri giant Cargill has reached an agreement to sell off its dressings, sauces and mayonnaise business (DSM) to privately owned Ventura Foods for an undisclosed sum.
Ventura Foods is a a joint venture between US farmer-owned co-operative, CHS and Mitsui & Co, a diversified multinational with ¥15 billion ($140 million; €120 million) in private equity investment, according to PEI Research & Analytics.
The business serves foodservice companies, restaurants and retailers. The company’s consumer brands include Marie’s dressings, LouAna oils, Dean’s dips and Gold n’ Soft spreads.
As part of the deal, Ventura Foods will acquire a processing facility in Florida, and Cargill’s dressings, sauce and mayonnaise assets will be relocated to Ventura Foods’ facilities in Texas and Pennsylvania.
“The acquisition of Cargill’s DSM business furthers Ventura Foods’ strategy to grow, strengthen and diversify. It adds greater depth to our already strong capabilities and another platform for innovation,” said Chris Furman, Ventura Foods’ chief executive.
In March, Paine & Partners partner Andy Freeman told Agri Investor that processors and other midstream assets appeared to be benefiting from a period of low fuel and commodity prices. Relatively stable consumer prices, he said, indicate widening margins in the sector.
“The price that I pay as a consumer for products on the shelf hasn’t really gone down, even if the input price for that processor’s products have gone down,” he said.
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