STANWOOD, Wash. — Two leading frozen food companies, Twin City Foods Inc., based in Washington state, and Smith Frozen Foods Inc., of Weston, have signed a term sheet to merge.

While the companies are finalizing the terms of the merger, according to a press release Friday, Feb. 23, from Twin City Foods, the companies expect to operate under a new parent company, TCF Holdings Inc.

“The dynamic partnership represents a strategic alignment of resources and capabilities to meet customer’s needs and meet market demand more effectively while supporting local farmers,” stated the press release. “The combination is expected to bring improved capabilities and efficiencies.”

Twin City Foods has been in the quick-frozen vegetable industry for more than 80 years. The company’s headquarters are in Stanwood, Washington, and there are facilities in Kennewick and Ellensburg, Washington.

Smith Frozen Foods has been operating since 1919 to bring vegetables from the ground to freezer.

“We expect customers to benefit from the synergies that the two companies will realize through the combination,” Smith Frozen Foods CEO Gary Crowder said in the press release.

“This marks a pivotal moment for Twin City Foods as we take a significant step in the path of strategic growth that we have set for the organization,” according to Dale Goyer, chief operating officer of Twin City Foods.

The companies expect to close the merger in the second quarter.