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Hormel looking to fry a deal with Sadler’s
Posted on Thursday, 20 February 2020 14:42
Hormel Foods is acquiring US-based meat processing company Sadler’s Smokehouse for an undisclosed sum.
Pending the usual customary conditions, the transaction is expected to close in March 2020.
Upon completion, the target will continue operations from its facility in Texas and report into Hormel’s refrigerated foods segment.
Sadler’s first opened its doors back in 1948 and provides premium pit-smoked meats for retail and foodservice customers across the US.
The group offers a range of whole muscle, slow-roasted and sliced dishes and claims to be the leading manufacturer of Hispanic recipes such as barbacoa, carne guisada and carnitas.
Sadler moved to its current location in 1984 and now operates a 40-acre business site which houses a 300,000 square foot processing plant.
Jim Snee, president of Hormel, said: “This is a very strategic acquisition for our foodservice business and it gives us another successful brand to expand into the retail and deli channels.”
Headquartered in Minnesota, the buyer is a global food company which operates across 75 countries worldwide.
Its brands include Premium Chicken Breast, Real Bacon Toppings, Wholly Guacamole and Not So Sloppy Joe.
During the quarter ended 26th January 2020, Hormel generated revenue of USD 2.38 billion, up slightly from USD 2.36 billion in the corresponding period of 2019.
Within the same timeframe, it posted gross profit of USD 468.42 million (Q1 2019: USD 488.33 million).
Over the last 12 months, Hormel sold California-based whey-based protein powders manufacturer CytoSport to PepsiCo for an undisclosed sum.
According to Zephyr, the M&A database published by Bureau van Dijk, there were 37 deals targeting meat and meat product merchant wholesalers signed off globally in 2019.
In the largest of these, Everything Fresh bought Jamaica-based the Meat Expert for USD 80.00 million.
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