US-based Hormel Foods has entered into South America with the acquisition of Brazilian meat company Cidade do Sol for about $104m.
Cidade do Sol offers over 70 products in 15 categories that include meats like mortadella, sausage and salami for Brazilian retail and foodservice markets under the Ceratti brand.
The acquisition allows Hormel Foods to establish a full in-country presence with a team of professionals in sales, marketing, operations, logistics and accounting.
The purchase price is subject to customary working capital adjustments.
Hormel Foods president and CEO Jim Snee said: "The Ceratti brand has a strong family ownership and a rapidly-growing distribution of its portfolio of value-added products.
"This acquisition is a strategic fit for Hormel Foods, provides us an initial entry into the Brazilian market and will serve as a platform for future growth in South America.”
Cidade do Sol CEO Mauro Preti said: “Hormel Foods has a strong reputation with values that align closely with the values we have built throughout our 85-year history.
“They share an unwavering focus on product quality, state-of-the-art technology, and transparency. Hormel Foods acquisition of the Ceratti brand provides the resources of a global company and will allow us to facilitate our plans for expansion and growth.”
Cidade produces more than 70 different flavored premium products and the company follows strict criteria for ingredient selection and production processes.
Recently, Hormel Foods acquired Italian meats company Fontanini Italian Meats and Sausages from Capitol Wholesale Meats for $425m.
Chicago-based 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' brands include SKIPPY, SPAM, Hormel Natural Choice, Applegate, Justin’s, Wholly Guacamole, Hormel Black Label and over 30 other brands.
