Hormel Foods Corporation (NYSE: HRL) today announced the closing of its acquisition of Columbus Manufacturing, Inc., an authentic, premium deli meat and salami company, from Chicago-based Arbor Investments. The addition of the Columbus® brand further strengthens Hormel Foods’ position as a total deli solutions provider while enhancing its other strong deli brands such as Hormel®, Jennie-O®, Applegate®, and Di Lusso®.
The purchase price is approximately $850 million. Total annual sales are approximately $300 million with an expected growth rate in excess of 5 percent. Hormel Foods expects this acquisition to be modestly accretive to earnings per share in fiscal 2018.
“The acquisition of Columbus is the catalyst for uniting all our deli businesses into one group,” said Jim Snee, chairman of the board, president and chief executive officer. “We received regulatory approval faster than anticipated and are excited to start building a stronger, more united deli organization.”
Subsequent to the closing of the acquisition, Hormel Foods is increasing its fiscal 2018 net sales guidance to $9.7 – $10.1 billion and increasing its earnings per share guidance to $1.62 – $1.72 per share.