Sector News

Hormel Foods buys Columbus Manufacturing for $850m

November 1, 2017
Food & Drink

Hormel Foods Corporation has today announced it will acquire deli meat and salami company Columbus Manufacturing for $850 million from Arbor Investments.

The deal serves as a catalyst for uniting Hormel’s deli business and enhances its brands such as Hormel, Jennie-O, Applegate and DiLusso.

Columbus Manufacturing, maker of Columbus Meats, has total sales of around $300 million and an expected growth rate in excess of 5%.

The meat producer was founded in 1917 and has two production facilities in Hayward, California. It will report into Hormel’s Refrigerated Foods segment and continue to operate from California.

Hormel Foods CEO Jim Snee highlighted the synergies that the deal will unlock for the two companies.

“Columbus is capitalising on one of the fastest-growing areas in the retail grocery store with premium, authentic products that are on-trend with today’s consumers who are looking for unique experiences, flavours, and products,” he said.

“The acquisition of Columbus will serve as a catalyst for uniting all our deli businesses into one customer-facing organisation.

“This acquisition significantly enhances our scale in the deli by broadening our portfolio of products, customers, and consumers. The synergies we can unlock with this acquisition are clear and I’m excited for the next evolution of our company.”

Columbus Manufacturing CEO Joe Ennen added: “As a millennial-focused brand, Columbus has generated category-leading growth through a passionate commitment to quality, simplicity, and time-honoured recipes.

“In Hormel we are joining an organisation whose values and culture perfectly align with our own.”

In August Hormel acquired Chicago-based sausage and meatball company Fontanini for $425 million as well as Brazilian meat company Cidade do Sol for $104 million.

Source: FoodBev

comments closed

Related News

June 24, 2022

Carlsberg announces resignation of CFO Heine Dalsgaard

Food & Drink

Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.

June 24, 2022

Kellogg to split into three companies, focus on snacks

Food & Drink

Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.

June 24, 2022

Mondelēz to buy energy bar company Clif Bar for $2.9bn

Food & Drink

The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.