Hormel Foods (NYSE:HRL) has reached a definitive agreement to sell its whole-bird turkey business to Life-Science Innovations (LSI), a move designed to insulate the food giant from the volatile swings of the commodity meat market.
The divestiture, announced Feb. 17, 2026, includes the Melrose production plant, the Swanville feed mill, and associated transport assets in Minnesota.
The deal allows Hormel to retain its crown jewel in the category: the JENNIE-O® brand name and its high-margin, value-added product lines like ground turkey and deli meats.
By offloading the seasonal and low-margin whole-bird segment—which often faces pricing pressure and avian-flu supply disruptions—Hormel is doubling down on a "branded food" strategy rather than a commodity processing one.
LSI, a long-time partner based in Willmar, Minnesota, will co-manufacture whole birds for Hormel through the end of fiscal 2026 to ensure holiday orders remain unaffected during the transition.
Management expects the sale to have a "minimal impact" on adjusted fiscal 2026 results.
The transaction is slated to close by the end of the second quarter, providing Hormel with a leaner supply chain as it aims to hit its full-year organic sales growth targets of 2% to 3%.