Hormel acquires Brazilian sausage makers in US$104 million deal
29 Aug 2017 --- Hormel Foods Corporation has acquired Cidade do Sol, a growing, branded, value-added meats company in Brazil with more than 70 products in 15 categories including meats like mortadella, sausage and salami for Brazilian retail and foodservice markets under the Ceratti brand.
This is the second acquisition for the Fortune 500 Minnesota-based company this month and will allow Hormel to grow in the South American market.
It comes hot on the heels of another acquisition earlier this month, when Hormel entered into an agreement to acquire Fontanini Italian Meats and Sausages based in Illinois for approximately US$425 million. Fontanini manufactures Italian meats and sausages as well as a variety of other premium meat products, including pizza toppings and meatballs.
Speaking about the Brazilian acquisition, Jim Snee, president and CEO of Hormel Foods, said: “Strategic international growth is important to Hormel Foods and South America has been of interest to us for several years.”
“The Ceratti brand has a strong family ownership and a rapidly-growing distribution of its portfolio of value-added products.”
“This acquisition is a strategic fit for Hormel Foods, provides us an initial entry into the Brazilian market and will serve as a platform for future growth in South America.”
The acquired business will become a part of Hormel Foods’ International business unit.
“The acquisition of the Ceratti brand allows us to enter the fast-growing Brazilian market with a premium brand,” adds Larry Vorpahl, group vice president of Hormel Foods and president, Hormel Foods International Corp.
“The Ceratti brand is poised for continued growth given its strong reputation in the market and outstanding products.”
“This acquisition allows us to establish a full in-country presence with an excellent team of professionals in sales, marketing, operations, logistics and accounting. We are committed to continued international expansion and, with the addition of the Ceratti brand, our global footprint will continue to grow.”
