Refrigerated salad dressing (RSD) brand Litehouse has signed an agreement to acquire all of Sky Valley Foods’ assets, effective 1 June 2019.

Sky Valley Foods is engaged in the production of organic shelf-stable dressings, condiments, marinades and sauces under the Organicville and Sky Valley brands.

With the $46m acquisition of Sky Valley Foods, the company intends to expand its portfolio in the natural and organic food channels, as well as increase its production capacity to support continued growth.

As part of the deal, Litehouse will acquire a 132,000ft² manufacturing facility located in Danville, Virginia, which is expected to play a key role in supporting the growing demand for Sky Valley, Organicville and Litehouse products across the US and Canada.

Litehouse president Kelly Prior said: “For some time, Litehouse has been looking to offer products that could be sold in the centre aisles of the grocery store.

“Before moving forward, we needed to ensure that the products we brought to market had the same high-quality standards and reliance on real ingredients as our core products.

“As we looked at Sky Valley Foods and their commitment to real food, real ingredients and better quality, we found great synergies.”

Upon completion of the deal, Sky Valley Foods founder Rachel Kruse will join the Litehouse team in order to facilitate the strategy and direction of Organicville and Sky Valley brands and products.

The company has five other manufacturing facilities in the US, located in Michigan, Utah, and Idaho. Its products are available in North America through general retail, e-commerce, foodservice, deli and club stores.