May 5, 2016

By GAI News Staff

Ventura Foods has agreed to acquire Cargill’s dressings, sauces, and mayonnaise (DSM) business for an undisclosed amount.

The business, which produces flavored dressings, sauces, mayonnaise, and tartar sauce for distribution and food service companies operates from one facility in Port St. Lucie, Florida, and two additional facilities under Cargill’s Fats & Oils Group located in Gainesville, Georgia and Sidney, Ohio.

Under the terms of the transaction, Ventura Foods will acquire the Port St. Lucie facility and the DSM assets located at the Gainesville and Sidney locations while Cargill will retain ownership of both the Georgia and Ohio plants, through which it will conduct its North American Fats & Oils Business. Ventura Foods will relocate the DSM assets from Gainesville and Sidney to its facilities in Chambersburg, Pennsylvania and Fort Worth, Texas.

Ventura Foods has experienced rapid growth over the past five years, and this acquisition follows only three months after Ventura’s acquisition of the sauces and condiments business of Canada-based Wing’s Foods. On the back of this growth, Ventura has become a major producer of dressings, sauces, mayonnaises, oils, and flavorings to restaurants, retailers, and foodservice outlets, according to Exit Hub.

“The acquisition of Cargill’s DSM business furthers Ventura Foods’ strategy to grow, strengthen and diversify,” said Chris Furman, president and chief executive officer of Ventura Foods in a recent press release.  “It adds greater depth to our already strong capabilities and another platform for innovation. We are highly confident in our ability to successfully integrate this important business and look forward to continuing the excellent work of Cargill’s DSM team.”

The divestment of its condiments business also follows within months of Cargill selling its industrial chocolate production unit located in Mannheim, Germany to a consortium led by Nimbus and Varova, reports Exit Hub. Despite these sell-offs, Cargill plans to continue to produce oils and shortening products for food production, and to continue to be a leading supplier of salad and cooking oils, high stability oils, Omega-3 oils, frying oils, cake and icing shortenings, specialty fats, tortilla shortening, and confectionery products.