SMITHFIELD, VA. — Smithfield Foods, Inc. has acquired Kansas City Sausage Co. L.L.C. (KC Sausage), a producer and processor of pre-rigor sausage. Terms of the agreement were not disclosed.
Smithfield formed a 50/50 joint venture with KC Sausage and its sister company, Pine Ridge Farms L.L.C., in February 2013. The agreement enabled Smithfield to expand its breakfast and dinner sausage categories, which generated $4 billion in retail and food service sales at the time.
|Kenneth Sullivan, president and c.e.o. of Smithfield Foods|
“This latest acquisition will build on the success of our growing packaged meats business and brands,” said Kenneth M. Sullivan, president and chief executive officer of Smithfield Foods. “It simultaneously enhances our vertically integrated supply chain, further harmonizing our live production and processing capabilities. With this transaction, we will strengthen our focus on branded pre-rigor pork products and leverage Smithfield’s expansive sales and distribution network to bring these premium offerings to more consumers.”
Following the formation of the joint venture with Smithfield, KC Sausage acquired the assets of Martin’s Abattoir & Wholesale Meats in Cumberland County, N.C., along with its sister companies, Coastal Protein Products Inc. and Coastal Protein Inc., in December 2013.
In May 2015, Smithfield and KC Sausage announced plans to build a 90,000-square-foot pork processing plant on the site of the former Martin’s Abattoir at a cost of $44.8 million. Construction on the new facility was completed in 2016. Approximately 1,000 sows per day are processed at the facility to make 50 million lbs of pork sausage annually. The new facility was an essential part of the company’s strategy to broaden product offerings and the company’s geographic footprint, said former Smithfield c.e.o. C. Larry Pope.
KC Sausage also has operations in Des Moines, Iowa, and Kansas City. The Des Moines operation produces raw materials for sausage and value-added products such as boneless hams and hides, while the Kansas City plant is described as a modern sausage processing facility that is designed for optimum efficiency.
|Joseph B. Sebring, president of the packaged meats division of Smithfield Foods|