Dive Brief:
- Cargill Inc. announced the sale of hot dogs and sausages brand Schweigert to Bakalars Sausage Co. Financial terms of the deal were not disclosed.
- Cargill noted "increasing demand for cooked meat products from current and potential customers" as the reason for freeing up production at its Albert Lea, MN, facility, where Schweigert products were previously manufactured, according to company spokesperson Mike Martin in an email to Star Tribune.
- The deal is expected to be completed in October.
Dive Insight:
Schweigert products are mostly sold in Minnesota, with small quantities distributed to other states, and Bakalars is a regional sausage company, making the acquisition of Schweigert "a wonderful addition to our portfolio of specialty meat items," Bakalars president Mike Bakalars said in a statement.
Cargill has been slimming down some segments while beefing up others. In July, the company announced it would be selling its pork business to JBS USA Pork for $1.45 billion. The company later said it would acquire Norwegian fish feed producer EWOS for $1.49 billion. Last month, the company announced it will acquire the pectin operations of FMC Corporation.
Cargill also received conditional approval for its $440 million acquisition of Archer Daniels Midland Co's global chocolate business in July, and the deal was completed last month.