US frozen pie and chilled meats firm Hillshire Brands has signed an agreement to acquire the maker of Golden Island jerky products.
The deal, for an undisclosed sum, will provide Hillshire with an entry point into the dried meat snacks category, the company said today (3 September).
“This highly appealing category generates retail sales of more than US$2bn annually and has had 10% volume growth over the past two years,” said Hillshire CEO Sean Connolly. “While we are excited about our future prospects in this category, this is a small acquisition for us and is not expected to have a material impact on our earnings this fiscal year.”
Golden Island will become part of Hillshire Brands’ Gourmet Food Group, pairing with brands including Aidells and Gallo. The group will be run by Sally Grimes, who, in addition to serving as senior vice president and chief innovation officer, will assume the role of president, Hillshire Brands Gourmet Food Group.
The transaction is expected to close by the end of September, pending closing conditions.
Last month, Hillshire forecast a possible fall in its full-year earnings.