US food maker Hormel Foods has said it has agreed to buy nutritional supplements and dairy products maker Century Foods International for US$115m in cash.

Privately-held Century Foods, which makes a variety of products from ready-to-drink protein beverages to nutritional bars, has annual sales of around $125m, Hormel said.

Austin, Minnesota-based Hormel said it would use the acquisition to increase its presence in the $6bn sports nutrition supplements and functional food category, reported Reuters.