Cargill has signed an agreement to buy Unliever’s tomato products business in Brazil for around BRL600m (US$350.6m).

The acquisition will include the Pomarola, Tarantella, Elefante, Extratomato, and Pomodoro brands, and a manufacturing facility based in Goiania, Brazil (Goias State) and related manufacturing assets.

Under the agreement, Unilever will continue to market tomato products to the foodservice channel under these brands but Cargill will manufacture these items under a co-packaging agreement.

“Acquiring Unilever’s tomato products business exemplifies Cargill’s long-term commitment to growing our business in Brazil by providing a diverse array of products in the food segment,” said Sergio Rial, Cargill senior vice president.

“This acquisition furthers our objective of becoming a leading food products company in Brazil, with a focus on shelf-stable consumer staple products. Delivering a wider range of products to retailers enables Cargill to improve the point-of-sale service we provide them. In addition, consumers will benefit from Cargill’s commitment to product innovation and quality, and our strong food safety and environmental stewardship practices.”

Unilever Brazil president Kees Kruythoff said the transaction is in line with its overall strategy of “strengthening” its portfolio by “building strong categories with global reach”. He added that the move will provide it with the opportunity to further enhance its “strong relationship with a leading supplier in Cargill and continue both companies’ productive relationship with the Brazilian retail and wholesale markets”.

Cargill and Unilever expect to complete the deal by the end of the year. However, the deal remains subject to regulatory approval.