Minn.-Based Hormel Foods Acquires Deli Meat Co. Columbus For $850M
MINNEAPOLIS (WCCO) -- Minnesota-based food company Hormel Foods has made its largest acquisition ever after an agreement to buy Columbus Manufacturing, Inc.
The deal, worth $850 million, is a move Hormel says will position its company as the total deli solutions provider as well as enhances its other deli brands.
"We are pleased to add Columbus to the Hormel Foods family. Columbus has an outstanding reputation in the food industry and is well-positioned in the advantaged retail deli category," said Jim Snee, president and chief executive officer at Hormel Foods. "Columbus is capitalizing 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, flavors, and products."
Hormel agreed to buy Columbus from Arbor Investments, a Chicago-based equity firm.
Hormel says Columbus' annual sales are about $300 million with an expected growth rate of more than 5 percent. The company will continue operations in California.
Hormel is based in Austin, Minnesota and was founded in 1891. The company says it makes over $9 billion in annual revenues across 75 countries worldwide. Its brands include SPAM, SKIPPY and others.