Hormel Foods is to sell Diamond Crystal Brands, a US business that supplies food and drinks to the foodservice industry, to an affiliate of local private-equity firm Peak Rock Capital.

Diamond Crystal Brands, based in Savannah in Georgia, supplies products including side dishes, sauces, baking mixes and beverage mixes. The division’s brands include the Cafe Delight coffee toppings, sugar and creamer brand. Hormel did not disclose any financial details on the transaction.

Hormel said it would keep a unit operated under Diamond Crystal Brands, Hormel Health Labs, which supplies food and drinks “developed specifically for individuals with special dietary needs”.

When contacted by just-food, Hormel declined to comment on why it had decided to sell Diamond Crystal Brands.

Hormel Health Labs focuses on two key conditions – malnutrition and dysphagia. The unit’s products include brands such as Building Blocks and Great Beginnings.

Peak Rock Capital’s assets in the food industry include Berner Food & Beverage, a manufacturer of private-label dairy products. The private-equity firm acquired Berner Food & Beverage in November.