AUSTIN, Minn., Oct. 31, 2017 /PRNewswire/ -- Hormel Foods Corporation announced Tuesday it has entered into a definitive agreement to acquire Columbus Manufacturing, Inc., an authentic, premium deli meat and salami company, from Chicago-based Arbor Investments. The acquisition positions Hormel Foods as a total deli solutions provider and enhances its other strong deli brands such as Hormel, Jennie-O, Applegate, and DiLusso.
"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."
"The acquisition of Columbus will serve as a catalyst for uniting all our deli businesses into one customer-facing organization," Snee said. "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 and I'm excited for the next evolution of our company."
"As a millennial-focused brand, Columbus has generated category-leading growth through a passionate commitment to quality, simplicity, and time-honored recipes," said Joe Ennen, chief executive officer of Columbus Manufacturing, Inc. "In Hormel we are joining an organization whose values and culture perfectly align with our own."
The purchase price is approximately $850 million. The company will continue to operate from California and will report into the Refrigerated Foods segment. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the United States.
About Hormel Foods Corporation – Inspired People. Inspired Food.
Hormel Foods Corporation, based in Austin, Minn., is a global branded food company with over $9 billion 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 beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of "The 100 Best Corporate Citizens" by Corporate Responsibility Magazine for the ninth year in a row, and has received numerous other awards and accolades for its corporate responsibility and community service efforts. In 2016, the company celebrated its 125th anniversary and announced its new vision for the future - Inspired People. Inspired Food.™ - focusing on its legacy of innovation. For more information, visit www.hormelfoods.com and http://csr.hormelfoods.com/.
About Columbus Manufacturing, Inc.
Columbus Manufacturing, Inc. is celebrating its 100th anniversary this year. Founded in 1917, the company produces award-winning Italian salami and deli meats sold under the Columbus® brand. With its commitment to and reputation for quality, Columbus is quietly setting the pace for growth in the deli meat category. Its products are available at food retailers nationwide. The company operates two state-of-the-art production facilities in Hayward, California. More information can be found at www.columbuscraftmeats.com
About Arbor Investments
Founded in 1999 and headquartered in Chicago, Illinois, Arbor Investments is a specialized private equity firm that focuses exclusively on acquiring premier companies in the food, beverage and related industries. The firm has acquired or invested in over 52 food, beverage and related companies in North America. More information can be found at www.arborpic.com.
