US-based Hormel Foods has acquired Fontanini Italian Meats and Sausages, a local foodservice business, from Capitol Wholesale Meats, for US$425m.
Fontanini is based in the Chicago metropolitan area and specialises in Italian meats and sausages, as well as a variety of other meat products including pizza toppings and meatballs.
Jim Snee, Hormel’s president and CEO, said: “This is a strategic acquisition for our high-growth foodservice division. 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.”
Gene Fontanini, chief executive officer of Capitol Wholesale Meats, said: “Hormel Foods has an excellent reputation as one of the strongest food companies in the world with a track record of successfully acquiring family-owned businesses like ours.
“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.”
Fontanini will continue operations out of its facility in the Chicago metropolitan area and will report into Hormel’s refrigerated foods division.
Earlier this month, Hormel announced it was adding production lines at its Dold Foods bacon factory while back in June it launched a range of on-the-go snacks under its Skippy brand.
Hormel is scheduled to announce its third-quarter results next Thursday.