Hormel to acquire Applegate Farms
Minnesota-based Hormel Foods Corporation has announced that it will acquire organic meat brand Applegate Farms for approximately $775m.
The move comes as Hormel, whose brands include Spam, Skippy, and Dinty Moore, tries to appeal to younger and more health-conscious consumers.
Jeffrey M. Ettinger, president and chief executive officer at Hormel Foods, said: “A growing number of consumers are choosing natural and organic products. This deal allows us to expand the breadth of our protein offerings to provide consumers more choice.”
Based in New Jersey, Applegate will operate autonomously. The deal is expected to close within 60 days.
Stephen McDonnell, Applegate founder and CEO, said: “Over the last 28 years Applegate has brought transparency and clean ingredients to American favorites and classics like hot dogs, bacon and deli meat. It was my mission from the start to change the way we think about meat – how it’s raised and produced – and this agreement is definitely a continuation of that mission.”
Earlier this year, Hormel Natural Choice unveiled a brand re-launch campaign starring actress Judy Greer encouraging viewers to ‘make the natural choice’ to promote its preservative-free lunchmeat.