AUSTIN, Minn., Aug. 24, 2017 /PRNewswire/
Hormel Foods Corporation (NYSE: HRL) today announced it has acquired Cidade do Sol, a growing, branded, value-added meats company in Brazil. The company offers more than 70 products in 15 categories including authentic meats such as mortadella, sausage and salami for Brazilian retail and foodservice markets under the popular Ceratti® brand.
"Strategic international growth is important to Hormel Foods and South America has been of interest to us for several years," said Jim Snee, president and chief executive officer, Hormel Foods. "The Ceratti® brand has a strong family ownership and a rapidly-growing distribution of its portfolio of value-added products. This acquisition is a strategic fit for Hormel Foods, provides us an initial entry into the Brazilian market and will serve as a platform for future growth in South America."
"The acquisition of the Ceratti® brand allows us to enter the fast-growing Brazilian market with a premium brand," said Larry Vorpahl, group vice president, Hormel Foods and president, Hormel Foods International Corporation. "The Ceratti® brand is poised for continued growth given its strong reputation in the market and outstanding products. This acquisition allows us to establish a full in-country presence with an excellent team of professionals in sales, marketing, operations, logistics and accounting. We are committed to continued international expansion and, with the addition of the Ceratti® brand, our global footprint will continue to grow."
"We are certainly proud to become part of the Hormel Foods family," said Mauro Preti, chief executive officer of Cidade do Sol. "Hormel Foods has a strong reputation with values that align closely with the values we have built throughout our 85-year history. They share an unwavering focus on product quality, state-of-the-art technology, and transparency. Hormel Foods acquisition of the Ceratti® brand provides the resources of a global company and will allow us to facilitate our plans for expansion and growth."
The purchase price was approximately US$104 million, subject to customary working capital adjustments. Cidade do Sol will report into Hormel Foods International Corporation. Hormel Foods was advised by HT Capital Advisors LLC, Faegre Baker Daniels LLP, and TozziniFreire Advogados.
Hormel Foods will provide further comment about this deal during its third quarter earnings call on August 24, 2017, at 8:30 a.m. CST.
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