News in Brief
Hormel completes $850m takeover
Minnesota-based Hormel Foods, the company behind famous canned meat product Spam, has completed its third takeover this year, buying Columbus Manufacturing from Chicago-based equity firm Arbor Investments.
“The acquisition of Columbus is the catalyst for uniting all our deli businesses into one group,” said Jim Snee, CEO of Hormel Foods.
“We received regulatory approval faster than anticipated and are excited to start building a stronger, more united deli organisation.”
Hormel confirmed its intention to acquire Columbus Manufacturing, a producer of authentic salami and deli meats, in early November. The acquisition should strengthen Hormel’s range of similar products such as Applegate and Di Lusso.
The acquisition, Hormel’s third this year following takeovers of Brazilian firm Ceratti and US-based Fontanini, should deliver more cash for company shareholders; Hormel has revised its share guidance, suggesting a price of $1.62 to $1.72 per share.
Annual sales for Hormel Foods are expected to land somewhere between US$9.7bn and US$10.1bn.
