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Sargento Foods has signed a definitive agreement to acquire California-based La Terra Fina, a producer of premium dips, spreads and refrigerated quiches.

The deal will see the family-owned cheese company enter the deli department of grocery retailers nationwide, expanding its portfolio beyond natural cheese and into the growing premium refrigerated foods category.

Financial terms of the transaction have not been disclosed. The acquisition is expected to close in late September, subject to customary closing conditions.

Founded in 1983 and headquartered in Union City, California, La Terra Fina employs approximately 250 people. The company produces a range of ready-to-eat refrigerated quiches, dips and spreads made with what it describes as simple, high-quality ingredients.

Its products are sold through club stores, supermarkets and specialty grocery retailers across the US, as well as in Canada and Mexico. The business has been a private affiliate of Catamount Management Corporation since 2015.

Sargento said La Terra Fina’s portfolio will complement its existing business as consumer demand for “real food” across meals and snacking occasions continues to grow.

Louie Gentine, third-generation chairman and CEO of Sargento Foods, said: “Our purpose at Sargento is to find new ways to add value to people's lives. Every day we do our best to make their lives better with food that brings them together."

The acquisition will also give Sargento an opportunity to build on La Terra Fina’s existing consumer following, while leveraging its own focus on innovation and quality.

La Terra Fina president and CEO Stephen Cottrell said: “This venture reflects the strength of what we've built and puts La Terra Fina in a great position for accelerated growth. And what's even better is that our cultures are genuinely aligned. Sargento puts people first, just as we do."

The acquisition marks a significant portfolio expansion for Sargento, which was founded in Plymouth, Wisconsin, in 1953. The company has more than 2,500 employees and reported $1.7 billion in net sales.

Sargento is best known for its natural cheese products, including sliced, shredded and snack cheeses, as well as cheese blends and ingredients.

As both companies are privately held, neither has disclosed financial details of the transaction.