Hormel Foods Corp. has reached a deal to sell Clougherty Packing, LLC, parent company of Farmer John and Saag’s Specialty Meats, along with PFFJ, LLC farm operations in California, Arizona, and Wyoming to Smithfield Foods Inc. for $145 million in cash.

Hormel President and CEO Jim Snee said the companies no longer align with Hormel’s long-term outlook.

“We appreciate the Farmer John, Saag’s and PFFJ employees’ dedication and commitment to their customers and consumers. While the businesses have performed well, they no longer align with our company’s growth strategies,” Jim Snee said in a press release.

The transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to close within 30 days.

The purchase price of $145 million in cash is subject to working capital adjustments at closing. Farmer John harvests approximately 7,400 hogs per day and, in fiscal 2016, the businesses accounted for approximately $500 million in sales and earnings per share of about 3 cents.