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Hormel to acquire Applegate

Hormel Foods is to acquire Applegate Farms which is said to own the number one brand in the natural and organic value-added prepared meats category in the USA. The purchase price is approximately $775 million. “A growing number of consumers are choosing natural and organic products. This deal allows us to expand the breadth of […]

Hormel Foods is to acquire Applegate Farms which is said to own the number one brand in the natural and organic value-added prepared meats category in the USA. The purchase price is approximately $775 million.

“A growing number of consumers are choosing natural and organic products. This deal allows us to expand the breadth of our protein offerings to provide consumers more choice,” said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer at Hormel Foods. “The Applegate team has built a great brand, and consumers can rest assured there will not be any changes to the way Applegate meats are raised and produced. Together, we can provide a faster path to expanded offerings in this high-growth category.”

Applegate will operate autonomously as a standalone subsidiary in the company’s Refrigerated Foods segment. Applegate has 100 employees located primarily in Bridgewater, New Jersey, and the company will be managed by this core Applegate team plus representatives from the parent company who will relocate to Bridgewater. Applegate has strategic relationships with a diverse set of manufacturers and processors who draw from approximately 1,800 family farms.

“Over the last 28 years Applegate has brought transparency and clean ingredients to American favourites and classics like hot dogs, bacon and deli meat,” said Stephen McDonnell, Applegate founder and long-time CEO. “It was my mission from the start to change the way we think about meat – how it’s raised and produced – and this agreement is definitely a continuation of that mission.”

Applegate 2015 annual sales are expected to be about $340 million.