Hormel Foods to buy meat firm Applegate for $775m

US-based food and meat products producer Hormel Foods has signed an agreement to acquire natural and organic meat firm Applegate Farms for around $775m.

As part of the deal, Applegate will operate independently as a standalone subsidiary, under Hormel’s refrigerated foods segment.

Hormel Foods president and CEO Jeffrey Ettinger said: "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."

The acquired business produces a wide range of natural and organic meat products, such as deli meats, hot dogs, bacon, sausages, frozen breaded chicken and pre-packed lunch kits.

With around 100 employees, Applegate has established strategic relationships with a diverse set of manufacturers and processors.
Applegate is expected to generate around $340m in revenues this year.

Applegate Farms founder and CEO said: "Over the last 28 years Applegate has brought transparency and clean ingredients to American favourites and classics like hot dogs, bacon and deli meat."

Subject to customary closing conditions and regulatory approvals, the deal is expected to be concluded within 60 days.

Credit Suisse and Goldman Sachs are financial advisors to Hormel Foods and Applegate, respectively, in connection with the deal.

Hormel Foods operations are spread over five segments, including grocery products, refrigerated foods, Jennie-O turkey store and specialty foods.

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Image: Hormel Foods plans to operate Applegate as a standalone subsidiary under its refrigerated foods segment. Photo: courtesy of Hormel Foods Corporation.