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Hormel Foods Corporation (HRL)

- NYSE
  • Thu, Feb. 12, 4:47 PM
    • Hormel Foods (NYSE:HRL) is in late-stage talks to acquire Applegate Farms, a producer of organic hot dogs, bacon and sausages, Reuters reports.
    • A deal reportedly could be announced as early as next week and value the privately-held company at $600M-$1B.
    • A sale would be the latest of several high-profile deals in the food sector, including Hershey's purchase of Krave, Post's purchase of Michael Foods, and Tyson's $8.6 takeover of Hillshire.
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  • Fri, Feb. 6, 11:42 AM
    • Closely held organic and natural meat producer Applegate Farms has hired Goldman Sachs to assist with a sale, and could fetch something in the area of $500M, reports the WSJ.
    • Protein's the thing, and a sale of Applegate would add to last year's Tyson Foods (NYSE:TSN) $7.7B purchase of Hillshire Brands, Post Holdings' (NYSE:POST) acquisition of Michael Foods, and Hormel's (NYSE:HRL) buy of CytoSport Holdings.
    • The Journal reports several industry players have expressed interest, but doesn't necessarily name the above companies.
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  • Jun. 30, 2014, 6:27 PM
    • Hormel (HRL) is buying CytoSport Holdings, maker of Muscle Milk protein drinks and other high-protein products, for $450M.
    • With CytoSport expected to have 2014 sales of $370M, Hormel is paying ~1.2x forward sales. The deal is expected to be neutral to FY14 (ends Oct. '14) EPS, and be accretive to FY15 EPS by $0.05.
    • Hormel: "Muscle Milk products will serve as a growth catalyst for our Specialty Foods segment, providing this division with a leading brand in the high-growth sports nutrition category ... The acquisition of CytoSport expands our offerings of portable, immediate, protein-rich foods, and broadens our appeal with younger consumers."
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  • Jun. 30, 2014, 5:49 PM
    • Hormel Foods (HRL) is nearing a deal to buy Muscle Milk maker CytoSport for more than $450M, with an announcement coming as soon as tomorrow, WSJ reports.
    • CytoSport's owners, which include P-E firm TSG Consumer Partners, put the company on the block last fall; at the time, it had EBITDA of ~$30M.
    | 1 Comment
  • Jun. 12, 2014, 2:17 PM
    • After missing out on Hillshire Brands and Smithfield Foods, Brazilian food giant JBS S.A. (JBSAY) has a narrower list of acquisition targets, according to Deutsche Bank.
    • Oscar Meyer (KRFT) and Hormel Foods (HRL) are two big-target options for JBS, while Maple Leaf Foods MFI and Sanderson Farms SAFM are on the lighter side.
    | 2 Comments
  • Mar. 23, 2014, 2:47 AM
    • Unilever's (UL) Ragu brand is attracting interest from Hormel Foods (HRL) and J.M. Smucker (SJM), Bloomberg reports, with Pinnacle Foods (PF), Hillshire Brands (HSH), Post Holdings (POST) and Japanese grocery supplier Mizkan also eying the pasta sauce.
    • First round bids for Ragu, which could bring in up to $2B, are due in at the end of this week.
    • The auction adds to Unilever's sale of other famous food brands such as Skippy peanut butter last year. Ragu makes up 40% of the company's pasta-sauce sales of $1.2B and is the U.S. market leader, but revenue has fallen 18% since 2009.
    | 9 Comments
  • Jan. 3, 2013, 10:39 AM
    Hormel's (HRL +5%) acquisition of Skippy Peanut Butter will put it in a pitched battle with J.M. Smucker's market-leading Jif brand with the odds stacked against it. Jif has maintained its dominance since 1981 and is still well-positioned with new low sodium and reduced fat products. Global growth could be part of Hormel's peanut butter plan. With the company positioning Spam as an upscale treat as ads in China call it a "juicy, meaty satisfaction" - the mind only wonders what the marketing mavens will call Jif on the global stage.
    | 2 Comments
  • Jan. 3, 2013, 7:40 AM
    Hormel Foods (HRL) buys the Skippy Peanut Butter business from Unilever (UL) for $700M. The company expects the deal for the iconic brand to be modestly accretive in FY13 and add between $0.13-$0.17 to earnings in FY14.
    | 1 Comment
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Company Description
Hormel Foods Corp is engaged in the production of meat and food products and the marketing of those products throughout the United States and internationally.
Industry: Meat Products
Country: United States