AUSTIN, Minn. – Hormel Foods Corp. has entered into a definitive agreement to acquire Brakebush Brothers, LLC, a leading value-added chicken company, from the Brakebush family.
The purchase price is approximately $1.055 billion, and the transaction is expected to close during the first quarter of Hormel Foods' fiscal 2027, subject to customary closing conditions, including regulatory approval.
The acquisition advances Hormel Foods' strategy of investing in growing protein categories, will meaningfully expand the company's position in value-added chicken and is expected to strengthen its leading Foodservice platform through enhanced operator relationships, category expertise and an expanded direct sales organization.
"Brakebush is a highly respected leader in value-added chicken and has earned the trust of customers for more than 100 years through innovation, quality and exceptional relationships," said Jeff Ettinger, interim chief executive officer. "The company's talented team, strong culture and differentiated capabilities make it an excellent fit for Hormel Foods. Our industry-leading Foodservice business has been a source of growth, and we are excited to meaningfully expand our presence in value-added chicken."
"Chicken has been one of the most attractive growth categories in protein, and Brakebush has built an exceptional platform to serve that demand," said John Ghingo, president and chief executive officer-elect. "Hormel Foods has built a strong Foodservice business by helping operators succeed through innovation, service and value-added solutions. We believe that Brakebush will bolster our capabilities, bringing additional scale, expertise and customer reach, in support of our long-term growth strategy."
"Brakebush has always been a people-first company, built on strong relationships, shared values and a commitment to doing business the right way," said Carey Brakebush, chairman of the board, Brakebush. "We see those same qualities in Hormel Foods. Their culture, integrity and long-term approach to growth give us great confidence that Brakebush will continue to thrive for our employees, customers and communities in the years ahead."
Founded in 1925 and headquartered in Westfield, Wisconsin, Brakebush has established itself as a leading, value-added, non-vertically integrated chicken provider, serving a diverse foodservice customer base across national and regional operators. Brakebush generated approximately $1.2 billion in net sales over the last 12 months and operates five production facilities and two research and development labs.
Hormel Foods expects the acquisition to generate growth, unlock operational synergies, and enhance cash flows. The company expects the acquisition to be accretive to adjusted earnings per share beginning in fiscal 2028. The company expects to report the results of Brakebush's operations primarily in its Foodservice segment.
ADVANCING HORMEL FOODS' GROWTH STRATEGY
Hormel Foods expects the acquisition to provide the following strategic benefits:
- Strengthens Hormel Foods' Position in a Growing Protein Category: The addition of Brakebush will significantly expand Hormel Foods' presence in value-added chicken, positioning the company to participate more meaningfully in one of the most attractive segments of protein.
- Creates a Broader Platform for Foodservice Segment Growth: Brakebush's established direct sales organization, deep relationships and category expertise are expected to enhance Hormel Foods' existing Foodservice capabilities and customer reach. Together, the businesses are expected to be better positioned to serve national and regional operators with high-quality, value-added protein solutions.
- Adds a Reputable, Scaled Asset: Opportunities to acquire a leading value-added chicken business with Brakebush's scale, reputation and customer loyalty are uncommon. Hormel Foods believes the company brings a solid asset base, strong innovation capabilities and deep customer relationships built over more than 100 years.
- Aligns with Hormel Foods' Long-Term Growth Strategy: The acquisition reflects Hormel Foods' disciplined approach to portfolio management and capital allocation, and reinforces its focus on categories, channels and capabilities with long-term growth potential.
Wells Fargo is acting as exclusive financial advisor to Hormel Foods and Faegre Drinker Biddle & Reath is serving as legal counsel. William Blair is acting as exclusive financial advisor and Michael Best & Friedrich LLP is serving as legal counsel for Brakebush.
