The transaction is subject to customary closing conditions and is expected to be completed in December 2018.
“The Fremont facility has been an important part of our company for decades, and we are certainly pleased to have found a home for this team and facility with WholeStone Farms,” said Jim Snee, chairman of the board, president and chief executive officer at Hormel Foods. “The strategic decision to transition the Fremont facility to WholeStone Farms reflects the long-term, changing dynamics in the pork industry, and most importantly, is aligned with our vision as a global branded food company.”
“We look forward to working with WholeStone Farms to ensure a smooth transition for our employees, suppliers and customers,” said Glenn Leitch, executive vice president of supply chain at Hormel Foods. “A multiyear supply agreement with WholeStone Farms ensures the Fremont facility will continue as an integral part of our supply chain in the future. Our focus continues to be on ensuring a stronger supply chain from procurement to shipment of products, fully optimizing our system to create an efficient, enterprise-wide structure to keep pace with the growing needs of our business.”
“The purchase of the Fremont, Neb., processing facility from Hormel Foods aligns with our vision to create and capture value in the pork supply chain for the 220 independent producers who own WholeStone Farms,” stated Dr. Luke Minion, chairman of the board of directors of WholeStone Farms. “We value the dedication and experience the existing team brings to WholeStone Farms, and are committed to significant additional investments in the facility for production efficiencies and enhancing employee wellness.”
The transaction includes a processing facility and a multiyear agreement to supply pork raw materials to Hormel Foods. The current Fremont plant management team and workforce will remain in place to ensure business continuity for all stakeholders. More information will be provided during the Hormel Foods Third Quarter Earnings Conference Call on Thursday, August 23, 2018, at 8:00 a.m. CT (9:00 a.m. ET).