Hormel Foods Corporation (NYSE: HRL) today announced completion of its purchase of the assets of Diamond Crystal Brands nutritional products (DCBNP), headquartered in Savannah, Ga. The transaction is valued at approximately $65 million in cash.
Hormel Foods announced on Feb. 21, 2001, the definitive agreement to acquire the assets of DCBNP, a division of Imperial Sugar Company. Hormel Foods will merge the assets of DCBNP into its Hormel HealthLabs subsidiary, which acquired the business and production facility of Cliffdale Farms in December 2000, making it one of the industry leaders in nutritionally enhanced food products.
DCBNP sells a variety of nutritionally enhanced products to foodservice customers, primarily hospitals and nursing homes. The company’s product line has more than 170 items that provide a high level of nutrients in good-tasting, visually appealing, economical and easy-to-use formulations.
“This acquisition strengthens Hormel HealthLabs’ position in the nutritionally enhanced food products market,” said Joel W. Johnson, chairman of the board, president and chief executive office of Hormel Foods. “A rapidly growing aging population is providing an opportunity for the Hormel HealthLabs team to develop new products in order to address their medical and nutritional needs. This acquisition helps us expand our leadership role.”
About Hormel HealthLabs
Hormel HealthLabs markets flavorful foods for people with special dietary needs, such as dysphagia, bowel problems, malnutrition and diabetes. Products are marketed to hospitals, nursing homes and other health facilities. Originally known as American Institutional Products (AIP), the business was acquired in 1994 and the headquarters subsequently relocated to Austin, Minn. In December 2000, Hormel HealthLabs acquired the business and production facility of Cliffdale Farms, located in Quakertown, Pa