Hormel fortifies meats portfolio, adds salami maker
Hormel Foods Corp. (NYSE: HRL) has agreed to buy deli meats producer Columbus Manufacturing Inc. from Arbor Investments for $850 million. Hormel has been growing its portfolio through acquisitions recently.
Columbus Manufacturing, founded in 1917 and headquartered in Hayward, California, makes mortadella, salami and ham under the Columbus brand. Arbor invested in the target in 2012. Barcalys and Faegre Baker Daniels LLP are advising Hormel. Bank of America Merrill Lynch, Rothschild and DLA Piper advised Columbus Manufacturing.
"Columbus is capitalizing 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, flavors, and products," says Hormel CEO Jim Snee. The target, which has around $300 million in annual sales, will report to Hormel's refrigerated foods segment.
Hormel Foods won Mergers & Acquisitions’ Deal of the Year Award in 2013 for the company’s acquisition of Skippy peanut butter from Unilever plc (NYSE:UL) for $700 million. To date, the company reports more than $9 billion in annual revenue. Austin, Minnesota-based Hormel owns a plethora of well-known food brands including: Skippy, Spam, Hormel, Natural Choice, Applegate, Justin’s, and Wholly Guacamole.
In other food and beverage deals, The Ferrero Group has agreed to buy Brach's owner Ferrara; Kellogg Co. (NYSE: K) has agreed to acquire protein bar maker RXbar; and Utz Quality Foods LLC is acquiring Inventure Foods Inc. (Nasdaq: SNAK).