AUSTIN, Minn.--(BUSINESS WIRE)--
Hormel Foods Corporation (NYSE: HRL) today announced it has entered into
a definitive agreement to sell Clougherty Packing, LLC, parent company
of Farmer John and Saag’s Specialty Meats, along with PFFJ, LLC farm
operations in California, Arizona, and Wyoming to Smithfield Foods, Inc.
The transaction is subject to customary closing conditions, including
the receipt of regulatory approvals, and is expected to close within 30
days.
“We appreciate the Farmer John, Saag’s and PFFJ employees’ dedication
and commitment to their customers and consumers. While the businesses
have performed well, they no longer align with our company’s growth
strategies,” said Jim Snee, president and chief executive officer. “This
divestiture also allows for the integration of the pork processing
facility at Farmer John with the majority of the live production
operations which supply the facility, and are currently owned by
Smithfield. We will work together to ensure a smooth transition for our
employees and customers.”
The purchase price was $145 million in cash, subject to working capital
adjustments at closing. Farmer John harvests approximately 7,400 hogs
per day and, in fiscal 2016, the businesses accounted for approximately
$500 million in sales and earnings per share of approximately 3 cents.
About Hormel Foods – Inspired People. Inspired Food.™
Hormel
Foods Corporation, based in Austin, Minn., is a global branded food
company with over $9 billion in annual revenues across 75 countries
worldwide. Its brands include SKIPPY®, SPAM®, Hormel® Natural Choice®,
Applegate®, Justin’s®, Wholly Guacamole®, Hormel® Black Label® and more
than 30 other beloved brands. The company is a member of the S&P 500
Index and the S&P 500 Dividend Aristocrats, was named one of “The 100
Best Corporate Citizens” by Corporate Responsibility Magazine for the
eighth year in a row, and has received numerous other awards and
accolades for its corporate responsibility and community service
efforts. In 2016, the company celebrated its 125th anniversary and
announced its new vision for the future - Inspired People. Inspired
Food.™ - focusing on its legacy of innovation. For more information,
visit www.hormelfoods.com
and http://2015csr.hormelfoods.com/.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking information based on
management’s current views and assumptions. Actual events may differ
materially. Factors that may affect actual results include, but are not
limited to: whether and when the required regulatory approvals will be
obtained, whether and when the closing conditions will be satisfied, and
whether and when the transaction will close. Please refer to the
cautionary statement regarding Forward-Looking Statements and Risk
Factors which appear on pages 33 - 40 in the company’s Form 10-Q for the
fiscal quarter ended July 24, 2016, which can be accessed at www.hormelfoods.com
under “Investors-SEC Filings.”
View source version on businesswire.com: http://www.businesswire.com/news/home/20161121006064/en/
Hormel Foods Corporation
Investors:
Nathan Annis,
507-437-5248
ir@hormel.com
or
Media:
Wendy
Watkins, 507-437-5345
media@hormel.com
Source: Hormel Foods Corporation