Hormel to acquire deli meat firm Columbus Manufacturing for $850m

US-based Hormel Foods has agreed to acquire premium deli meat and salami company Columbus Manufacturing for close to $850m.

The acquisition is expected to position Hormel as a total deli solutions provider and improve its deli brands such as Hormel, Jennie-O, Applegate, and DiLusso.

Hormel Foods president and chief executive officer Jim Snee said: “The acquisition of Columbus will serve as a catalyst for uniting all our deli businesses into one customer-facing organisation.

“This acquisition significantly enhances our scale in the deli by broadening our portfolio of products, customers and consumers.

“The synergies we can unlock with this acquisition are clear.”

The acquisition will be completed after receiving regulatory approvals in the US.

Columbus will continue to operate from California and will report into the refrigerated foods segment of Hormel Foods upon completion of the transaction.

Columbus Manufacturing is involved in the production of Italian salami and deli meats that are sold under the Columbus brand at food retailers across the US. The company operates two production facilities in Hayward, California.

Snee added: “Columbus has an outstanding reputation in the food industry and is well-positioned in the advantaged retail deli category.

“Columbus is capitalising on one of the fastest-growing areas in the retail grocery store with premium, authentic products that are on-trend with today’s consumers who are looking for unique experiences, flavours and products.”

Hormel Foods generated more than $9bn in annual revenues across 75 countries worldwide.

Its brands include SKIPPY, SPAM, Hormel Natural Choice, Applegate, Justin’s, Wholly Guacamole, Hormel Black Label, and more than 30 other brands.