Hormel Foods in talks to acquire Applegate Farms

US-based Hormel Foods is reportedly in the process of acquiring Applegate Farms, a producer of organic hot dogs, bacon and sausages.

Hormel Food is looking to enhance its branded protein offerings through the deal, according to Reuters.

Reuters further stated that there was a possibility of an announcement regarding the Applegate deal as early as next week. The deal is estimated to be worth between $600m and $1bn.

Applegate Farms was founded in 1987 by current CEO Stephen McDonnell.

The news follows other merger activities for meat companies.

Other recent deals include Hershey’s acquisition of jerky company Krave, Post Holdings’ $2.5bn acquisition of food processing company Michael Foods, and Tyson Foods’ $8.6bn acquisition of packaged meats producer Hillshire Brands.

Reuters also reported last week that private equity owners of protein and sandwich supplier AdvancePierre Foods is also in talks with banks for a near-term sale of the company.

In addition, Hormel acquired Muscle Milk maker CytoSport Holdings in August 2014 for approximately $450m.

Based in Austin, Hormel Foods manufactures and markets consumer-branded food and meat products. The company is a member of the Standard & Poor’s (S&P) 500 Index, S&P 500 Dividend Aristocrats for 2014 and was named the 2013 Sustainable Supply Chain of the Year by Refrigerated and Frozen Foods magazine.

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Image: Applegate Farms produces organic hot dogs, bacon and sausages. Photo: courtesy of milspa / freeimages.com.