Cargill Inc. has reached an agreement to sell its Dressings, Sauces and Mayonnaise (DS&M) business to Ventura Foods, a joint venture that already makes similar products.
The size of the Cargill business unit and price were not disclosed.
Cargill DS&M makes products such as mayonnaise, tartar sauce, flavored dressings and sauces for national foodservice companies and distributors. The business operates from one standalone facility in Port St. Lucie, Fla., and two facilities integrated within the broader operations of Cargill's Fats & Oils Group in Gainesville, Ga., and Sidney, Ohio. Cargill will continue to produce oil and shortening products.
Ventura Foods, based in Brea, Calif., is a privately held joint venture of CHS Inc. and Mitsui & Co. with approximately $3 billion in annual revenue. It makes custom and proprietary dressings, sauces, mayonnaises, oils and other flavorings for foodservice companies, restaurants and retailers, as well as retail brands that include Marie's dressings, LouAna oils, Dean's dips and Gold n' Soft spreads.
Included in Ventura Foods' acquisition are Cargill's Port St. Lucie facility and the DS&M assets at the Sidney and Gainesville facilities. Cargill will provide contract manufacturing services for 15-18 months to Ventura Foods, but the DS&M assets from Sidney and Gainesville will be relocated to Ventura Foods facilities in Chambersburg, Pa., and Fort Worth, Texas.