Hormel Foods this week announced an agreement to sell Diamond Crystal Brands to a Texas private equity firm.
Diamond Crystal, based in Savannah, Ga., makes single-serve condiments and seasonings primarily for the food service industry.
Minnesota-based Hormel acquired the company in 2002 from Imperial Sugar for $115 million; terms of the deal with Peak Rock Capital were not disclosed but are expected to be released during Hormel's second-quarter earnings call next month.
"DCB represents an exciting opportunity to invest in a leading middle market food and beverage company with a long-standing reputation for quality and service," Peak Rock CEO Anthony DiSimone said in a statement.
Hormel will retain Hormel Health Labs in the transaction, which makes foods and beverages for those with special dietary needs.