US-based Hormel Foods has announced it has acquired local meat business Sadler’s Smokehouse for US$270m.
The Spam and Jennie-O Turkey Store maker described it as a strategic acquisition for its foodservice business.
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Henderson, Texas-based Sadler’s Smokehouse specialises in pit-smoked meats for retail and foodservice customers. Hormel Foods has been a customer of the family business for more than two decades.
Sadler’s Smokehouse will continue operations from its Texas facility and will report into Hormel’s refrigerated foods segment. The transaction is due to close in March.
Jim Snee, CEO at Hormel Foods, said: “Sadler’s Smokehouse is a great company with an impressive history, talented team and an outstanding portfolio of on-trend products that resonate with consumers, customers and operators.
“This is a very strategic acquisition for our foodservice business and it gives us another successful brand to expand into the retail and deli channels.
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By GlobalData“The company has been one of our trusted suppliers for over two decades, and we have been fortunate to build a relationship with the Sadler family.
“Authentic barbeque is on-trend and continues to show excellent growth on restaurant menus across the nation. This acquisition perfectly aligns with our strategic initiative of strengthening our position in foodservice and gives us another highly-differentiated branded product line, similar to what we have with Burke pizza toppings and Fontanini Italian meats and sausages.
“We also see a unique opportunity to further extend the Sadler’s product line into the retail and deli channels.”
Harold Sadler, owner of Sadler’s Smokehouse, said: “Hormel Foods has an excellent reputation as one of the best food companies in the world. We are excited for our employees and family knowing Hormel Foods will continue the Sadler family legacy.”
Yesterday (19 February), Austin, Minnesota-based Hormel announced it is to banish growth drugs from its pork supply with the Chinese market in mind. It said it will no longer take meat that contains the growth drug Ractopamine, which is banned in China.
The company also reported its first-quarter results today, which showed net sales of $2.4bn, up 1% on a year-on-year basis. Pre-tax earnings were down 5% at $290m, primarily due to the divesture of CytoSport, Hormel said.
