American food company Hormel Foods has agreed to acquire deli meat and salami company Columbus Manufacturing from Arbor Investments for about $850m.
The acquisition places Hormel as a complete deli solutions provider and also boost its other deli brands like Hormel, Jennie-O, Di Lusso and Applegate.
Further, it would serve as a catalyst for bringing together the deli businesses of Hormel Foods and provide it a salami and charcuterie product range.
This acquisition is also expected to significantly improve the scale of the company in the deli category by expanding its portfolio of products, customers, and consumers.
Hormel Foods president and CEO Jim Snee said: “Columbus has an outstanding reputation in the food industry and is well-positioned in the advantaged retail deli category.
“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.”
Post acquisition, Columbus Manufacturing, which is the maker of Columbus Craft Meats will continue to operate from California. It will join the Refrigerated Foods segment of the Minnesota-based Hormel Foods.
Columbus Manufacturing stated that it was looking for a partner who could help it in sustaining the momentum it has built and to help it share its meats to more consumers. It believes that Hormel Foods can deliver that in spades.
Columbus Manufacturing CEO Joe Ennen said: “As a millennial-focused brand, Columbus has generated category-leading growth through a passionate commitment to quality, simplicity, and time-honored recipes.
“In Hormel we are joining an organization whose values and culture perfectly align with our own.”
The closing of the acquisition would be subject to regulatory approvals in the US among other customary closing conditions.
