Hormel Foods acquires Fontanini Italian Meats & SausagesHormel Foods acquires Fontanini Italian Meats & Sausages
Transaction structured as an asset sale with purchase price of $425 million.
August 17, 2017
Hormel Foods Corp. announced Aug. 17 that it has acquired Fontanini Italian Meats & Sausages, a branded foodservice business, from Capitol Wholesale Meats Inc. The transaction was structured as an asset sale with a purchase price of $425 million, subject to customary working capital adjustments.
Fontanini is based in the Chicago, Ill., metropolitan area and specializes in authentic Italian meats and sausages as well as a variety of other premium meat products, including pizza toppings and meatballs.
“This is a strategic acquisition for our high-growth foodservice division. We have delivered a strong track record of success in the foodservice industry, with a growing portfolio of customers in the lodging, restaurant, health care and college and university sectors,” Hormel Foods president and chief executive officer Jim Snee said. “The Fontanini brand is highly regarded, and the addition of these products to our portfolio will allow us to accelerate growth for both Hormel Foods foodservice and for Fontanini through expanded distribution and new customers.”
Jeff Baker, Hormel Foods group vice president of foodservice, said the Fontanini business perfectly complements Hormel’s branded foodservice business. “We are excited about this new partnership and our ability to leverage key Hormel Foods resources such as (research and development), operations, supply chain and finance to grow this dynamic business. While we are focused on ensuring a seamless transition and continued stewardship of the Fontanini brand, we are also excited about leveraging their new state-of-the-art production facility, which has additional capacity to produce many Hormel Foods products,” Baker said.
Gene Fontanini, CEO of Capitol Wholesale Meats, said the acquisition will allow Fontanini to be strengthened under the Hormel Foods umbrella, given its leadership in retail, combined with shared leadership in foodservice.
“Through this business, the Fontanini family has left its mark on the world,” he said. “Partnering with Hormel Foods will allow us to expand that mark. I couldn’t be more proud of all that we have accomplished, and I look forward to seeing where we go next.”
Fontanini will continue operations out of its facility in the Chicago area and will report into the Refrigerated Foods segment of Hormel.
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