Hormel Foods US$850m purchase of Columbus Manufacturing gets green light

7b89de1f-cda8-4bb1-980b-87d9a2c65299articleimage.jpg

29 Nov 2017 --- Hormel Foods Corporation has closed off its acquisition of Columbus Manufacturing, Inc., an authentic, premium deli meat and salami company, from Chicago-based Arbor Investments.

The addition of the Columbus brand further strengthens Hormel Foods' position as a total deli solutions provider while enhancing its other strong deli brands such as Hormel, Jennie-O, Applegate, and Di Lusso, says the US company.

The purchase price is approximately US$850 million and the closing of the deal quickly follows Hormel Foods initial announcement earlier this month. 

Total annual sales are approximately US$300 million with an expected growth rate in excess of 5 percent. Hormel Foods says it expects this acquisition to be modestly accretive to earnings per share in fiscal 2018.

"The acquisition of Columbus is the catalyst for uniting all our deli businesses into one group," said Jim Snee, chairman of the board, president and chief executive officer. "We received regulatory approval faster than anticipated and are excited to start building a stronger, more united deli organization."

Increasing earnings per share
Subsequent to the closing of the acquisition, Hormel Foods is increasing its fiscal 2018 net sales guidance to US$9.7  US$10.1 billion and increasing its earnings per share guidance to US$1.62 - US$1.72 per share.

The closing of the acquisition also follows Hormel Foods Corporation recently consolidating its food segments. The company’s corporation’s Specialty Foods segment has been merged into its Grocery Products segment. The primary focus of the segment is on delivering a strong branded portfolio of leading products to the evolving retail environment of food, drug, mass, club and E-commerce. Read more here. 

Related Articles

Business News

Dairy UK joins call for more Brexit clarity

11 Dec 2017 --- Dairy UK has welcomed the progress being made between the UK government and the European Union on Brexit negotiations, however, the organization also wants to see much more clarity on the future relationship with the EU and how to stabilize the dairy industry.

Food Ingredients News

Sugar reduced solutions in abundance at FiE 2017

11 Dec 2017 --- Sugar reduction was the focus for many exhibitors at this year's Food ingredients Europe 2017 (FiE), even in indulgent applications, such as chocolate and desserts. With 2018 set to be a big year for sugar reduction and with sugar taxes coming into effect in Ireland and the UK, many ingredients suppliers are looking to innovate even further in the space of sugar reduction.

Food Ingredients News

McCormick 2018 Flavor Forecast highlights adventurous global fusions

11 Dec 2017 --- McCormick & Company, Inc., has released the McCormick Flavor Forecast 2018. This year’s Flavor Forecast highlights the casual, adventurous and interactive nature of how people are eating across the globe today.

Food Ingredients News

Omya responds to fast-growing need for calcium and vitamin fortification

11 Dec 2017 --- At the beginning of this year, global producer of calcium carbonate, Omya, began to address the needs of the fast-growing vegan market, by expanding their offering of their Calcipur brand for producers of plant-derived drinks based on soy, rice, oat, coconut or almond. As the demand for calcium and vitamin fortification grows due to evolving lifestyles trends, Omya’s platform offers an array of opportunities within the vegan space as well as several major consumer groups. Calcium deficiency is a growing concern and Omya is responding to those requests.

Business News

Firmenich tips fig as “flavor of the year” for 2018

11 Dec 2017 --- Firmenich has named fig as “Flavor of the Year” for 2018 based on the growing appeal for this healthy and fruity flavor worldwide. “With its numerous health benefits and sweet and satisfying flavor profile, fig offers endless opportunities to inspire our customers and delight their consumers across a wide range of food categories,” says Chris Millington, President of Firmenich, Flavors.

More Articles