AUSTIN, Minn. (Reuters) - Hormel Foods, the maker of Spam processed meat, said Monday it has acquired the Diamond Crystal Brands unit from Imperial Sugar for $115 million in stock.

The buyout, which includes sugar, sugar substitute, salt and pepper products, drink mixes and dessert mixes, is aimed at expanding Hormel's food service business.

The stock deal is expected to add to Hormel's earnings immediately, Hormel said. The business had $160 million of revenue in the last fiscal year.

Share of Hormel (HRL: up $0.04 to $22.68, Research, Estimates) rose on the news.  

--from staff and wire reports