SMITHFIELD, Va. - Smithfield Foods Inc. says it plans to form a joint venture to help grow its packaged meats business.
The pork producer said Friday it has signed a letter of intent with Kansas City Sausage Company and its sister company Pine Ridge Farms.
Terms were not disclosed but the company said the transaction will be funded with cash on hand. It is expected to close in the fourth quarter of fiscal 2013.
Smithfield CEO C. Larry Pope says the move will provide a growth platform in the breakfast and dinner sausage categories and expand its product offerings. The categories represent more than $4 billion in retail and foodservice sales annually.
The company says it will merge Kansas City Sausage's efficient operations with Smithfield's strong brands and sales and marketing team.
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