Hormel Foods agrees $1.055 billion Brakebush acquisition
- Hormel Foods (NYSE:HRL) signed a definitive agreement to acquire Brakebush Brothers for approximately $1.055 billion.
- Brakebush generated about $1.2 billion in net sales over the last 12 months and supplies processed chicken to foodservice operators.
- Hormel Foods stated that the acquisition is expected to expand its chicken business and increase adjusted earnings per share beginning in fiscal 2028.
Hormel Foods (NYSE:HRL) signed a definitive agreement to acquire Brakebush Brothers from the Brakebush family for approximately $1.055 billion, adding a processed chicken supplier to its Foodservice business.
The acquisition target generated approximately $1.2 billion in net sales over the last 12 months and operates five production facilities and two research and development labs serving national and regional foodservice customers.
Hormel Foods expects the transaction to close during the first quarter of fiscal 2027, subject to customary closing conditions, including regulatory approval, and stated that Brakebush’s operating results will primarily be reported within its Foodservice segment.
Brakebush Brothers produces processed chicken products for foodservice operators, while Hormel Foods operates across food categories including branded food products, refrigerated foods and meat products.
Hormel Foods stated that it expects the acquisition to expand its chicken business, increase customer reach, create operational synergies and enhance cash flows, with adjusted earnings per share expected to increase beginning in fiscal 2028.
