FDBusiness.com

Cargill has signed an agreement to acquire Five Star Custom Foods, a Texas-based specialist in cooked protein products and custom-prepared soups and sauces for the foodservice and food processing sectors.

The acquisition includes both of Five Star Custom Foods’ facilities in Fort Worth, Texas and Nashville, Tennessee. The incorporation of the company into Cargill’s portfolio will enhance the company’s existing cooked protein capabilities, optimise supply chain efficiencies and provide further scope for innovation, Cargill said.

The ingredients company will assume responsibility for Five Star Custom Foods’ 385 staff.

Financial terms of the deal, which is expected to be finalised this summer, were not publicly disclosed.

“We’re thrilled with the opportunity to add Five Star Custom Foods to the Cargill family because it has a record of proven success producing high-quality, value-added, customised products that delight its customers,” said Brian Sikes, corporate vice-president of Cargill’s protein businesses. “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.”

Five Star Custom Foods president and founding partner Jeff Bledsoe said: “Cargill is a company with a rich history and reputation for producing exceptional products. Together, we share a commitment for taking care of employees and nurturing customer relationships. As we look toward the future, we are excited by Cargill’s commitment to excellence and long-term profitable growth. We truly believe this to be a ‘winning’ scenario for everyone involved.”

And John Keating, president of Cargill Meats Solutions Corporation, continued: “We take great pride in our ability to deliver high-quality, safe and nutritious food to people around the world. These two locations in Fort Worth and Nashville fit well with Cargill’s existing US geographic footprint, and we look forward to sharing our vision and passion for protein with the Five Star Custom Foods team.”

The acquisition is the second Fort Worth operation Cargill has purchased in the past four years. In 2012, Cargill purchased a beef grind facility in the area. More recently, Cargill announced its acquisition of a ground beef processing plant in Columbia, South Carolina. Its protein portfolio includes beef, value-added protein, turkey, cooked meats and food distribution businesses, and serves customers around the world.