AUSTIN, Minn., Aug. 17, 2017 /PRNewswire/ -- Hormel Foods
Corporation (NYSE: HRL) today announced it has acquired Fontanini
Italian Meats and Sausages, a branded foodservice business, from
Capitol Wholesale Meats, Inc. The company is based in the
Chicago metropolitan area and
specializes in authentic Italian meats and sausages, as well as a
variety of other premium meat products including pizza toppings and
meatballs.
"This is a strategic acquisition for our high-growth foodservice
division. We have delivered a strong track record of success in the
foodservice industry with a growing portfolio of customers in the
lodging, restaurant, healthcare and college and university
sectors," said Jim Snee, president
and chief executive officer at Hormel Foods. "The Fontanini®
brand is highly regarded, and the addition of these products to our
portfolio will allow us to accelerate growth for both Hormel Foods
foodservice and for Fontanini through expanded distribution and new
customers."
"The Fontanini business perfectly complements our branded
foodservice business," said Jeff
Baker, group vice president of foodservice at Hormel Foods.
"We are excited about this new partnership and our ability to
leverage key Hormel Foods resources such as R&D, operations,
supply chain and finance to grow this dynamic business. While we
are focused on ensuring a seamless transition and continued
stewardship of the Fontanini® brand, we are also excited
about leveraging their new state-of-the-art production facility,
which has additional capacity to produce many Hormel Foods
products."
"Hormel Foods has an excellent reputation as one of the
strongest food companies in the world with a track record of
successfully acquiring family-owned businesses like ours," said
Gene Fontanini, chief executive
officer of Capitol Wholesale Meats, Inc. "This acquisition will
allow Fontanini to strengthen under the Hormel Foods umbrella given
its leadership in retail combined with our shared leadership in
foodservice. Through this business, the Fontanini family has left
its mark on the world. Partnering with Hormel Foods will allow us
to expand that mark. I couldn't be more proud of all that we have
accomplished and I look forward to seeing where we go next."
JoAnne Fontanini, president of
Capitol Wholesale Meats, Inc. added, "At Fontanini, we strive for
our motto – Una Bella Differenza® – or a beautiful
difference through the production of the highest quality products
our customers have come to expect and love matched by customer
service exceeding industry standards. I am confident that Hormel
Foods will embrace all that makes us special – our products, our
employees and our customers. On behalf of our entire family, we are
excited about the resources and experience Hormel Foods will bring
to Fontanini and look forward to seeing continued growth, well into
the future."
Fontanini will continue operations out of their facility in the
Chicago metropolitan area and will
report into the Refrigerated Foods segment.
The transaction was structured as an asset sale with a purchase
price of $425 million, subject to
customary working capital adjustments.
Hormel Foods will provide further comment about this deal during
its third quarter earnings call on August
24, 2017, at 8:30 a.m.
CST.
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 Fontanini Italian Meats and Sausages
Fontanini Italian Meats and Sausages, originally known as
Capitol Wholesale Meats, was founded in 1960 by Oriano Fontanini, a young Italian immigrant who
believed in the "American Dream," and his wife, Jennie Fontanini. Today, the company is highly
regarded as the premier Italian meats company serving the
foodservice industry. The company strives to make a beautiful
difference through the production of the highest quality products
its customers have come to expect and love matched by customer
service exceeding industry standards. Fontanini has received
American Masters of Taste Gold Medal Awards for Hot Italian Sausage
Links, Sweet Italian Sausage Links, Mamma Ranne® Meatballs,
Pot Roast, and Meatloaf. In addition to other taste and excellence
awards, Fontanini® Mamma Ranne® Meatballs have also been
featured on The Food Network's Unwrapped. For more
information, visit www.fontanini.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking information based on
management's current views and assumptions. Actual events may
differ materially. Factors that may affect actual results include,
but are not limited to: whether and when the Company will be able
to realize the expected financial results of the transaction, and
how customers, competitors, suppliers and employees will react to
the transaction. Please refer to the cautionary statement
regarding Forward-Looking Statements and Risk Factors that appear
on pages 32 - 38 in the company's Form 10-Q for the quarter ended
April 30, 2017, which can be accessed
at www.hormelfoods.com under "Investors-SEC Filings."
INVESTOR
CONTACT:
|
MEDIA
CONTACT:
|
Nathan
Annis
|
Wendy
Watkins
|
(507)
437-5248
|
(507)
437-5355
|
ir@hormel.com
|
media@hormel.com
|
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SOURCE Hormel Foods Corporation