Hormel Foods, the US manufacturer that this week sold Muscle Milk maker CytoSport, has outlined the types of businesses it is interested in acquiring.
Speaking to analysts after reporting its first-quarter financial results, Hormel’s chairman, president and CEO, Jim Snee, said “strategic acquisitions” remained part of the “formula of success” at the Spam meats and Justin’s peanut butter maker.
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“We’re continuing to be very, very active looking for impactful M&A,” Snee said. “We’ve talked a lot about our desire to continue to add on to our very strong foodservice presence. We have capacity in our international business to do more. And then, I think even in our domestic grocery products segment, we believe that with some of the M&A activity that’s taken place, there’ll probably be some carve-outs.”
Hormel’s most recent acquisition was announced in October 2017, when it bought US deli meat and salami producer Columbus Manufacturing for US$850m from private-equity firm Arbor Investments.
The only deal announced in 2018 saw an asset go the other way, with Hormel selling a pork processing facility in Nebraska to WholeStone Farms.
Speaking yesterday, Snee suggested another area in which Hormel could look to make acquisitions.
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By GlobalData“We also want to be very intentional about our ability to expand our MegaMex business. That’s a business that’s done really well for us, it’s on trend and we’d love to get bigger faster there. So, we’ve got a number of different places where M&A can fit and we are being very, very active.”
Hormel and Mexico’s Herdez del Fuerte formed MegaMex in 2009 to market Mexican foods in the US.
