SMITHFIELD, VA. — Smithfield Foods Inc. announced on June 6 it entered into a definitive agreement to purchase Cargill’s dry sausage production plant in Nashville. The terms of the agreement were not disclosed.

Smithfield expects the transaction to close by the end of July.

“This transaction is a testament to our continued focus on growing our packaged meats business by staying ahead of and delivering on our customers’ preferences,” said Steve France, president of packaged meats at Smithfield. “Dry sausage is one of our fastest-growing categories, and acquiring this facility from Cargill will better position us to improve sales, drive volume and increase our capacity to bring high-quality dry sausage products to the foodservice, industrial and retail sectors. We look forward to serving this facility’s existing customers and welcoming a new group of team members to Smithfield Foods.”

As part of Smithfield’s strategy to fuel growth in the value-added packaged meats segment, the acquisition will allow the company to meet increased demand for pepperoni, deli, charcuterie and other dry sausage products. The Nashville facility will support production of the company’s existing dry sausage brands — Margherita, Carando and Armour.

Smithfield anticipates growing its dry sausage production capacity by 50 million lbs per year with the new facility.

Smithfield will make formal offers of employment to the approximately 160 active Cargill Nashville employees for the same positions they currently hold, with no changes to their current base pay, and provide a benefits package that includes comprehensive medical coverage, a free-tuition program and other benefits.