USA: Hormel Food Corporation acquires Applegate Farms LLC
Hormel Food Corporation has announced it has entered a definitive agreement to acquire Applegate Farms for approximately $775 million.
Applegate is a leading maker of natural and organic prepared meats including deli meat, hot dogs, bacon, chicken strips and burgers. According to the deal, Applegate will operate autonomously as a standalone subsidiary in the company’s Refrigerated Foods segment.
“A growing number of consumers are choosing natural and organic products. This deal allows us to expand the breadth of our protein offerings to provide consumers more choice”, said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer at Hormel Foods. “Together, we can provide a faster path to expanded offerings in this high-growth category”.
“Over the last 28 years Applegate has brought transparency and clean ingredients to American favourites and classics like hot dogs, bacon and deli meat”, said Stephen McDonnell, Applegate founder and CEO. “It was my mission from the start to change the way we think about meat – how it’s raised and produced – and this agreement is definitely a continuation of that mission”.
The transaction, which is subject to customary closing conditions, is expected to be concluded by the end of July.
Source: Hormel / Applegate