Hormel Foods has signed an agreement to sell its whole-bird turkey business to Life-Science Innovations (LSI) as part of the company’s efforts to refine its portfolio.
In a statement, the US-based food company said the transaction covers assets including the Melrose, Minnesota, whole-bird production facility; the Swanville, Minnesota, feed mill; and associated transportation assets.
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However, the agreement does not include Hormel Food’s Jennie-O brand name or the wider range of Jennie-O turkey products.
Financial terms of the transaction were not disclosed.
Hormel Foods’ interim CEO Jeff Ettinger said: “Our strategy for sustainable, profitable growth centres on expanding our value-added protein portfolio to meet evolving consumer needs, while reducing our exposure to more volatile, commodity-driven businesses.
“We are confident that this portion of our legacy turkey business will be in good hands under LSI’s ownership, given their deep experience and expertise in this area.”
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By GlobalDataThe divestment follows comments made in December by Hormel Foods’ president John Ghingo about efforts to “simplify” the portfolio.
The company also signed an investment agreement with Forward Consumer Partners last October to spin off its Justin’s brand of nut butters and chocolate snacks.
Commenting on the whole-bird turkey business sale, Ghingo said: “This transaction is an important next step in our evolution.
“With a more focused turkey portfolio, we will continue strengthening the value-added aspects of our Jennie-O business. We look forward to working with LSI to ensure a smooth transition for our team members, customers, consumers and suppliers.”
The transaction is slated to close by the end of Hormel Foods’ second quarter of fiscal 2026, subject to customary closing conditions.
As part of the agreement, Minnesota-based LSI will also assume supply contracts with third-party turkey growers dedicated to the whole-bird business.
LSI, which holds a partnership with Turkey Valley Farms in the state, will also provide co-manufacturing services to Hormel Foods through the end of fiscal 2026. Hormel Foods said the arrangement is intended to support “uninterrupted fulfilment of customer orders” during the transition.
Separately, Hormel Foods also reported preliminary first-quarter fiscal 2026 results ahead of a presentation at the CAGNY event yesterday (17 February).
The Spam canned meat-owner expects organic net sales in the quarter to increase 2% year-on-year to about $3bn. This would mark the company’s “fifth consecutive quarter of year-over-year organic net sales growth”.
Diluted earnings per share are expected to be $0.33 for the quarter.
Hormel Foods added the sale of the whole-bird turkey business is expected to have a minimal impact on its adjusted 2026 financial results.
The company is scheduled to release its final first-quarter results on 26 February.
