Family-owned US poultry firm Foster Farms is set to buy the Fernando’s and El Extremo foodservice brands from ConAgra Foods.

“This acquisition is a strategic fit for Foster Farms,” Ron Foster, Foster Farms’ president and CEO said on Monday (8 June), “and will give us capabilities to expand our current businesses in the foodservice, retail, and C-store channels.”

Financial terms of the deal, expected to close next week, have not been disclosed.

A manufacturing facility in Compton, California was included in the sale. The plant is used to produce handheld Mexican products under the Fernando’s and El Extremo labels and will remain operational.

ConAgra Foods and Foster Farms have agreed to a transition service agreement to manage the order entry, warehousing and delivery of Fernando’s and El Extremo products and to provide sales support during the transition period.

“Our shared goal is for this transition to be as seamless as possible for customers and they will continue to receive uninterrupted service,” Foster said.

Last month, Foster Farms entered into a definitive deal with Pilgrim’s Pride to acquire the US poultry group’s Louisiana chicken complex for US$80m.