US- European savory ingredient producer Solina is furthering its expansion in the U.S. market through the purchase of Smithfield Foods’ seasoning business, Saratoga Food Specialties, for US$587.5 million.
The transaction expected to close at the end of the month will accelerate Solina’s North American expansion by adding liquid solutions to its existing dry seasoning capabilities while doubling its number of facilities in the region.
WH Group, the largest pork company in the world and the owner of Smithfield Foods, believes the disposal of Smithfield Foods will enable the company to reallocate capital into future investment opportunities and pursue other opportunities.
The company added that the sale of the American food processor will also maintain a key relationship with the buyer, a strategic supplier of raw materials for certain of the group’s production facilities.
The move will see Solina onboard Saratoga’s three facilities, located in California, Illinois, and Nevada, as well as its leadership team and 500 employees.
The company will now have a total of four sites in the US and two in Canada, mirroring its capabilities in dry and liquid solutions in Europe while an expanded number of facilities globally, totaling 37.
Saratoga, which boasts annual sales of US$280m (€285m), specializes in supplying quick service restaurants (QSR) and food manufacturers with dry seasoning blends and liquid solutions, including sauces, dressings, and glazes.
Like Solina, Saratoga combines market and consumer insights with culinary expertise, R&D infrastructure, and advanced procurement capabilities to support and guide its customers with extensive value-added services.
With these capabilities and a remarkable growth trajectory due to its strong service-driven approach, Solina said Saratoga represents a perfect fit with its vision to establish a global customer-centric organization in which geographical proximity is key for long-lasting customer relationships.
Michael Marks, president of Saratoga said: “Solina has become a market leader in Europe by providing integrated solutions that address the diverse needs of each project, which complements the way we focus on our customers’ needs. This acquisition is good for our business, our customers, and our people.”
The Saratoga acquisition is the third step in a North American expansion strategy that began in 2020 with the acquisition of Canadian food service leader Produits Alimentaires Berthelet.
Solina established a presence in the U.S. for the first time in 2021 with the acquisition of Asenzya, a Wisconsin-based provider of custom, dry savory solutions.
The expanded set of North American capabilities will enable Solina to build contingency into its supply chain and leverage its European services and value proposition.
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