Smithfield Foods is adding to its collection by acquiring 90 percent of Cumberland Gap Provision, a privately held processor of hickory smoked hams, sausages and other specialty pork products.

Smithfield agreed to pay $56 million, excluding working capital and other closing adjustments, for 90 percent of Cumberland Gap. The founding McGregor family will keep a 10 percent stake in the company.

A Smithfield spokesman says the company expects to close the deal in the next month and a half, and to immediately add to its earnings.

Cumberland Gap's facilities in Middlesboro, Kentucky, have an annual processing capacity of more than 100 million pounds and posted net sales of $70 million last year.

Smithfield Foods, Reuters