Hormel's Busy Year
May 1, 2005
Hormel’s Busy Year
Hormel Foods Corp., Austin, MN, has been a big player in the acquisition business, picking up companies that are not only in the food industry but are also connected to the industry. This fiscal year alone, the company has made four acquisitions in the food and foodservice industries, spending more than $280 million in the process.
Clougherty Packing Co., Los Angeles, CA, was acquired at the end of December for $185.7 million. Clougherty is the company behind the Farmer John brand of products. “Its strong West Coast brand and strategic West Coast manufacturing location strengthen our position in the market and we look forward to Clougherty Packing’s many contributions to our organization,” said Joel Johnson, chairman of the board and chief executive officer of Hormel.
Arriba Foods, New Berlin, WI, was acquired on February 1 for $47 million. The company is a manufacturer and marketer of Mexican food products, including salsas, tortillas, seasonings, and chips for the retail markets and the foodservice industry. They are marketed under the Manny’s, Gringo Pete’s, and Mexican Accent brands.
Bremen, GA-based Mark-Lynn Foods, acquired on March 30 for $42.5 million, is a manufacturer and distributor of a wide array of foodservice items, including salt and pepper packets, ketchup, mustard, sauces and salad dressings, creamers, sugar packets, as well as jellies, desserts, and drink mixes. Johnson says the company will strengthen Hormel’s Specialty Foods business segment.
Hormel’s latest transaction was acquiring Lloyd’s Barbecue Co., St. Paul, MN, from General Mills, who acquired the company in 1999. Terms of the deal, which was completed on April 4, were not disclosed. Lloyd’s offers a full range of barbecue products, including shredded pork, chicken, and beef tubs, honey hickory shredded pork and chicken, and barbecue pork spareribs, beef backribs, and pork baby-back ribs.
“Lloyd’s Barbecue Co. is an excellent addition to the Hormel Foods family of consumer brands and fits our growing array of high-quality product offerings sought by today’s busy families,” said Johnson. He anticipated margin and growth opportunities for Lloyd’s by capitalizing on Hormel’s distribution and meat supply systems.
“Lloyd’s brands have earned strong market share in the retail refrigerated entrée category — a business that Hormel Foods knows well,” Johnson added. “We believe Lloyd’s will continue to flourish as part of our roster of refrigerated products.