Meat and packaged food group Hormel Foods has acquired the privately-owned pizza toppings and cooked meats specialist Burke Corporation for US$110m.
Hormel said it anticipates annual net sales of $125m, and expects the deal to be accretive to its fiscal 2008 earnings.
Burke manufactures and markets pizza toppings and cooked meat products, primarily serving the restaurant and foodservice market and frozen food producers.
“Hormel Foods is a leader in pepperoni, and the addition of Burke Corp. strengthens our position in the pizza-topping industry by expanding our offerings to foodservice customers,” said Hormel’s chairman, president and CEO Jeffrey M. Ettinger. “This acquisition increases our production efficiencies and adds manufacturing capabilities, enabling Hormel Foods to grow in this important category.”
“The cultural similarities between Hormel Foods and Burke Corp. made the decision to move forward with this transaction an easy one,” said Bill Burke, Jr., who is to remain at the helm of the Iowa-based company which is to become part of Hormel’s refrigerated foods division. “Our new relationship with Hormel Foods will allow us to continue, and even strengthen, our focus on customers and fellow team members, who consistently produce high quality products.”