The US-based Hormel Foods has brokered a deal to acquire Sadler’s pit-smoked meat business Smokehouse in a deal valued at $270m.

based in Henderson, Texas, US, the family owned Smokehouse produces pit-smoked meats for retail and foodservice customers.

Hormel Foods board chairman, president and CEO Jim Snee said: “Sadler’s Smokehouse is a great company with an impressive history, talented team and an outstanding portfolio of on-trend products that resonate with consumers, customers and operators.

“This is a very strategic acquisition for our foodservice business and it gives us another successful brand to expand into the retail and deli channels.”

Smokehouse has been supplying its food products to Hormel Foods for more than two decades.

Snee explained that the deal forms part of Hormel Foods’ strategy to improve its position in the foodservice sector. It also intends to expand its branded product line. Smokehouse will complement its Burke pizza toppings and Fontanini Italian meats and sausages businesses.

Subject to customary closing conditions, it expects the deal to conclude in March.

Smokehouse will continue to operate its facility in Henderson after the acquisition. It will become part of Hormel Foods’ refrigerated foods sector.

Sadler’s Smokehouse owner Harold J Sadler said: “Hormel Foods has an excellent reputation as one of the best food companies in the world. We are excited for our employees and family knowing Hormel Foods will continue the Sadler family legacy.”

In November 2017, Hormel Foods acquired deli meat and salami company Columbus Manufacturing from Arbor Investments for $850m.