US agricultural commodities trader Cargill has entered into an agreement to acquire Five Star Custom Foods for undisclosed sum.
Five Star Custom Foods is a Texas-based food company specializing in cooked protein products and custom prepared soups and sauces for the foodservice and food processing sectors.
Through the acquisition, Cargill will own both of the Five Star Custom Foods facilities in Fort Worth and Nashville. Currently, the products manufactured at these facilities include meat toppings for pizza, pulled pork and chili.
Cargill Meats Solutions president John Keating said: "These two locations in Fort Worth and Nashville fit well with Cargill's existing U.S. geographic footprint, and we look forward to sharing our vision and passion for protein with the Five Star Custom Foods team."
The acquisition is expected to improve Cargill's existing cooked protein capabilities, optimize its supply chain efficiencies and provide innovation opportunities.
Cargill's protein businesses corporate vice president Brian Sikes said: "We are acquiring an excellent company with talented people who do an outstanding job delivering a five star experience to their customers, helping them to succeed and grow.
"Adding Five Star Custom Foods to Cargill's protein business will provide us with new capabilities we currently do not have, while allowing us to be more nimble in our ability to meet the ever-changing needs of our customers and consumers in today's fast-paced marketplace.
"We will also learn from the proven success of the Five Star Custom Foods team, which will allow us to enhance our own portfolio as we continue to grow our protein business."
Cargill expects to finalize the transaction this summer after a customary regulatory review. Lazard Middle Market acted as a financial advisor to Five Star Custom Foods in the transaction.
The latest acquisition is the second by Cargill in Fort Worth. In 2012, Cargill purchased a beef grind facility in the area.
In May, Cargill decided to keep its protein business headquarters in Wichita after a thorough analysis of numerous options, including several cities in states other than Kansas.
