American branded food giant Hormel Foods has purchased Italian meats company Fontanini Italian Meats and Sausages from Capitol Wholesale Meats for $425m.
Based in Chicago, Fontanini is a branded foodservice business which was established in 1960 and was operating as Capitol Wholesale Meats in the past. The company manufactures Italian meats and sausages along with a range of other premium meat products like pizza toppings and meatballs for the foodservice industry.
Hormel Foods president and chief executive officer Jim Snee calls the acquisition of Fontanini as a strategic move for the company’s high-growth foodservice division.
Snee added: “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.
“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.”
Fontanini’s operations will be continued from its existing facility in the Chicago metropolitan area. It will come under the Refrigerated Foods segment of the Minnesota-based Hormel Foods.
According to Capitol Wholesale Meats CEO Gene Fontanini, Hormel Foods is renowned as a strong global food company with a track record of successfully acquiring family-owned businesses like Fontanini Italian Meats and Sausages.
Fontanini added: “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.”
The transaction has been structured as an asset sale says Hormel Foods with the purchase price to be based on customary working capital adjustments.
