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
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