Hormel Foods, the US-based food group, behind meat brands Spam and Jennie O-Turkey Store, has struck a deal to buy Brazilian packaged meats firm Cidade do Sol.
The acquisition sees Hormel, which generates the bulk of its revenue in North America, enter South America for the first time.
Hormel has paid US$104m for Cidade do Sol, which the US group described as a “growing, branded, value-added meats company”.
Cidade do Sol owns the Ceratti brand and markets products like sausage and salami to Brazilian retail and foodservice customers.
“The acquisition of the Ceratti brand allows us to enter the fast-growing Brazilian market with a premium brand,” Larry Vorpahl, the president of Hormel’s international business. “The Ceratti brand is poised for continued growth given its strong reputation in the market and outstanding products. This acquisition allows us to establish a full in-country presence with an excellent team of professionals in sales, marketing, operations, logistics and accounting. We are committed to continued international expansion and, with the addition of the Ceratti brand, our global footprint will continue to grow.”
The acquisition of Cidade do Sol came alongside the publication of Hormel’s third-quarter financial results and the company’s move to issue a profit warning amid pressure on raw-material prices.