Hormel Foods has agreed to acquire Applegate Farms, a natural and organic meat products manufacturer, for around $775m.
The companies have reached a definitive agreement to this effect.
Applegate will operate as a separate, stand-alone subsidiary as part of Hormel Foods' refrigerated foods segment.
Applegate has partnerships with a diverse group of manufacturers and processors who draw from approximately 1,800 family farms.
The company offers a wide range of products, including refrigerated deli meat products, hot dogs, bacons, half time products, dinner sausages, traditional Italian products, chicken strips, and cheeses; frozen burgers, breakfast sausages, breaded chicken products, and corn dogs; and fresh pork products.
Hormel Foods chairman, president and CEO Jeffrey Ettinger said: "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."
Subject to customary closing conditions, including the receipt of regulatory approvals in the US, the acquisition is expected to be completed within 60 days.
The deal is expected to be neutral to Hormel Foods' earnings per share in fiscal 2015 and accretive by around $0.8 per share in fiscal 2016.
Hormel Foods produces and markets various meat and food products worldwide. The company operates in five segments, including grocery products, refrigerated foods, Jennie-O turkey store, and specialty foods.
