US pork manufacturer Smithfield Foods is set to acquire a dry sausage production facility from agri-food major Cargill.

Financial details were not disclosed.

The facility is based in Nashville, Tennessee and its production will support Smithfield’s existing dry sausage brands, including Margherita, Carando and Armour, adding capacity of 50 million pounds per year.

Smtihfield, owned by China's WH Group, said the deal will help its “strategy of continued growth in the value-added packaged meats segment”.

The company will make “formal offers of employment” to the approximately 160 active Cargill employees for the same positions they hold. The company said the offers would have “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 deal is expected to close by the end of July.

“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, president of packaged meats for Smithfield.

“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.

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

Cargill sold off another two meat processing plants last month when Central Valley Meats purchased a beef processing plant in California.