Sector News

Meat Producer Applegate Farms Is Pursuing a Sale

February 9, 2015
Food & Drink
Bacon and chicken-nugget maker Applegate Farms is on the auction block, in what would be the latest in a recent string of meat-company sales.
 
The closely held company is working with investment bank Goldman Sachs Group Inc. to contact potential buyers, people familiar with the matter said. Applegate, which specializes in organic and frozen food, could fetch around $500 million in a sale, they said, adding that the auction has attracted other industry players.
 
A sale of the company would come on the heels of a year in which there was a number of sales of protein companies. Last year, Tyson Foods Inc. paid $7.7 billion for Hillshire Brands Co., which makes Jimmy Dean sausages. Post Holdings Inc. bought egg and dairy-goods company Michael Foods Group Inc. and Hormel Foods Corp. purchased Muscle Milk maker CytoSport Holdings Inc.
 
U.S. sales of packaged foods with protein-related claims on their labels rose to $7.5 billion in the year ended Feb. 15, up more than 50% from the same period four years earlier, according to research firm Nielsen.
 
A change in consumer eating habits is underpinning consolidation in the sector. Americans are moving to more protein-heavy diets and eschewing carbohydrates, while seeking more organic products.
 
By Dana Mattioli 
 

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.