LONDON, UK / ACCESSWIRE / November 2, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Hormel Foods Corp. (NYSE: HRL), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=HRL. The Company announced on October 31, 2017, that it has signed an agreement to acquire Columbus Manufacturing, Inc., an authentic, premium deli meat and salami Company. Hormel is acquiring Columbus from private equity firm Arbor Investments. The transaction is valued approximately $850 million. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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Transaction details

The acquisition will strengthen Hormel's existing deli business by adding a premium range of Salami and Charcuterie products to its existing product lines. The deal will allow Hormel to offer a complete variety of deli solutions and enhance is existing product offerings across brands like Hormel®, Jennie-O®, Applegate®, and Di Lusso®.

Columbus has annual sales of approximately $300 million and has an expected growth rate of over 5%. The deal is expected to be "modestly accretive" to Hormel's earnings per share (EPS) in fiscal 2018. In fiscal 2019, Hormel expects the deal to add $0.06 to $0.08 to its EPS.

The exact date of closing of the deal has not be clarified; however, it is subject to regulatory approvals and other closing conditions.

Once the transaction is completed, Columbus which manufactures premium salami and other meat products will become a part of Hormel's Refrigerated Foods segment and continue to operate from California.

Commenting on the deal Jim Snee, President and CEO of Hormel Foods, said:

"Columbus is capitalizing on one of the fastest-growing areas in the retail grocery store with premium, authentic products that are on-trend with today's consumers who are looking for unique experiences, flavors, and products. The acquisition of Columbus will serve as a catalyst for uniting all our deli businesses into one customer-facing organization. This acquisition significantly enhances our scale in the deli by broadening our portfolio of products, customers, and consumers."

Joe Ennen, CEO of Columbus Manufacturing, Inc., added:

"As a millennial-focused brand, Columbus has generated category-leading growth through a passionate commitment to quality, simplicity, and time-honoured recipes. In Hormel we are joining an organization whose values and culture perfectly align with our own."

Strategic acquisitions for growth

Columbus is the third strategic acquisition done by Hormel in FY17 so far. Earlier in August 2017, Hormel had acquired Fontanini Italian Meats and Sausages for $425 million. Fontanini specializes in in authentic Italian meats and sausages as well as a variety of other premium meat products including pizza toppings and meatballs. In the same month, Hormel also acquired Cidade do Sol, a Brazilian meat processor for approximately $104 million, marking the Company's entry in the South America and the fast-growing Brazilian market. Cidade do Sol is owner of popular meat brand Ceratti® and offers more than 70 products in 15 categories including authentic meats such as mortadella, sausage, and salami for Brazilian retail and food industry.

About Hormel Foods Corp.

Hormel Foods was founded by George A. Hormel in 1891 in Austin, Minnesota and is a global branded food Company. Its brands include SKIPPY®, SPAM®, Hormel® Natural Choice®, Applegate®, Justin's®, Wholly Guacamole®, Hormel® Black Label® plus 30 other well-known brands. The Company's products are sold across 75 countries worldwide including China, Japan, Australia, South Korea and the Philippines.

The Company is supported by a global team of over 19,000 employees and its annual revenues exceed $9 billion.

About Columbus Manufacturing, Inc.

Established in 1917, Columbus is one of the finest producers of superior quality cured Italian meat salami and authentic deli meats in US and are sold under the Columbus® brand. It manufactures a wide variety of products such as Calabrese, Sopressata, Genoa, and Italian Dry salami as well as premium deli meat favorites made with whole cuts of turkey, ham, and roast beef. The Company operates two state-of-the-art production facilities in Hayward, California. Incidentally, the Company is celebrating its 100th anniversary this year.

About Arbor Investments

Chicago, Illinois, Arbor Investments was founded in 1999 and is a specialized private equity firm that focuses exclusively on acquiring premier Companies in the food, beverage and related industries. The firm has acquired or invested in over 52 food, beverage and related Companies in North America.

Last Close Stock Review

At the close of trading session on Wednesday, November 01, 2017, Hormel Foods' stock price rose slightly by 0.16% to end the day at $31.21. A total volume of 3.32 million shares were exchanged during the session, which was above the 3-month average volume of 2.40 million shares. The Company's shares are trading at a PE ratio of 19.31 and have a dividend yield of 2.18%. At Wednesday's closing price, the stock's net capitalization stands at $16.47 billion.

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