Hormel Foods acquires Columbus Manufacturing Inc in $850mn
Hormel Foods has announced that it is going to acquire Columbus Manufacturing Inc., an authentic, premium deli meat and salami company from Chicago-based Arbor Investments.
Through the purchase, Hormel Foods will add brands such as Jennie-O, Applegate and DiLusso to its portfolio and will position the company as a total deli solutions provider.
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"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 CEO 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, flavours, and products."
San Francisco-based Columbus Craft Meats us a 100-year-old company that specialises in charcuterie and salumi. It has undergone impressive growth in recent years, generating about US$300mn in annual sales and is predicted to grow at a rate of more than 5%.
The company also identifies millennials as part of its core consumer base, says Joe Ennen, CEO at Columbus Manufacturing.
"The acquisition of Columbus will serve as a catalyst for uniting all our deli businesses into one customer-facing organization," added Snee.
"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."
