Hormel Foods to buy family-owned chicken firm Brakebush for $1.06 billion
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The company logo for Hormel Foods is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., October 9, 2019. REUTERS/Brendan McDermid
Sept 30 (Reuters) - Hormel Foods on Wednesday said it would buy family-owned chicken processor Brakebush Brothers for $1.06 billion, as the Skippy peanut butter maker looks to expand its protein portfolio.
Consumers are increasingly gravitating toward protein-rich meals as health and wellness trends shape food choices.
The Westfield, Wisconsin-based Brakebush generated nearly $1.2 billion in net sales in the last 12 months. The company, operated by the Brakebush family since 1925, sells processed raw and cooked chicken, including patties, wings and nuggets.
Hormel said the deal is expected to close in the first quarter of fiscal year 2027 and will add to its adjusted earnings per share from fiscal 2028.
Hormel, which also owns brands such as organic meat processor Applegate, last month cut its annual sales forecast after missing third-quarter sales estimates.
Its shares rose about 2% in premarket trading following the news.
(Reporting by Shania S Thomas in Bengaluru; Editing by Arun Koyyur and Sahal Muhammed)
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