Hormel Foods to acquire Brakebush Brothers for $1.055 billion
Hormel Foods Corp. announced a definitive agreement to buy Brakebush Brothers, a value‑added chicken company, for approximately $1.055 billion. The transaction is slated to close in the first quarter of fiscal 2027, pending customary approvals. Hormel expects the deal to expand its foodservice platform and become accretive to adjusted earnings per share starting in fiscal 2028.
Why it matters
The acquisition adds five production facilities and a direct‑sales organization, potentially boosting Hormel's foodservice revenue and earnings. The company projects adjusted EPS accretion from fiscal 2028 onward, which could improve shareholder returns once integration is complete.
Key facts
- 1Purchase price is approximately $1.055 billion. perishablenews.com
- 2Deal expected to close during the first quarter of Hormel's fiscal 2027, subject to regulatory approval. perishablenews.com
- 3Brakebush generated about $1.2 billion in net sales over the last 12 months. perishablenews.com
- 4Acquisition expected to be accretive to adjusted earnings per share beginning in fiscal 2028. perishablenews.com
- 5Hormel forecasts fiscal 2026 adjusted EPS of $1.45–$1.51. finance.yahoo.com
- 6Net debt to adjusted EBITDA is projected to rise from 1.5x to the low‑2x range after the purchase. finance.yahoo.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.