US-based agribusiness and food giant Cargill has signed an agreement to acquire beef products, soups and sauces supplier Five Star Custom Foods.
The acquisition of Five Star, which specialises in cooked protein products and custom-prepared soups and sauces for the foodservice and food processing sectors, includes both of the firm’s facilities in Fort Worth and Nashville, Tennessee.
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The terms of the agreement were not disclosed. Cargill said the deal, which is subject to regulatory review, is expected to be finalised this summer.
Brian Sikes, corporate vice-president for Cargill’s protein businesses, said the acquisition will provide it with “new capabilities we currently do not have, while allowing us to be more nimble in our ability to meet the ever-changing needs of our customers and consumers in today’s fast-paced marketplace”.
John Keating, president of the Wichita-based Cargill Meats Solutions division, said Five Star’s Fort Worth and Nashville sites “fit well with Cargill’s existing US geographic footprint”.
Five Star, which was established in 1999, is the second Fort Worth operation Cargill has purchased in the past four years. In 2012, Cargill bought a beef grind facility in the area.
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By GlobalDataLast March, Cargill announced its acquisition of a ground beef processing plant in South Carolina from FPL Food. Cargill said its protein portfolio includes beef, value-added protein, turkey, cooked meats and food distribution businesses.
In May, Cargill said it was forming a joint venture with the largest Asian food service company, Jollibee Foods Corporation, to build and operate a poultry processing plant in the Philippines to supply the fast-food chain.
