Last updated on November 29th, 2017 at 03:45 pm
Hormel Foods Corp. has closed on its acquisition of Columbus Manufacturing Inc., a deli meat and salami company, from Chicago-based Arbor Investments. According to Hormel Foods, the addition of the Columbus brand strengthens its position as a total deli solutions provider while enhancing its other deli brands, such as Hormel, Jennie-O, Applegate and Di Lusso.
The purchase price is approximately $850 million. Total annual sales are approximately $300 million, with an expected growth rate in excess of 5 percent. Hormel Foods expects this acquisition to be modestly accretive to earnings per share in fiscal 2018.
“The acquisition of Columbus is the catalyst for uniting all our deli businesses into one group,” said Jim Snee, chairman of the board, president and CEO. “We received regulatory approval faster than anticipated and are excited to start building a stronger, more united deli organization.”
Subsequent to the closing of the acquisition, Hormel Foods is increasing its fiscal 2018 net sales guidance to $9.7-$10.1 billion and increasing its earnings per share guidance to $1.62-$1.72 per share.
Hormel Foods, based in Austin, Minnesota, is a global branded food company with more than $9 billion in annual revenues across more than 80 countries worldwide. Its brands include Skippy, SPAM, Hormel Natural Choice, Applegate, Justin’s, Wholly Guacamole, Hormel Black Label and more than 30 other brands.