Hormel acquires Brazilian meat company in $104M deal
Aug. 24, 2017
by Keith Nunes
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Cidade do Sol processes such value-added product as mortadella, sausage and salami under the Ceratti brand.
AUSTIN, Minn. – Hormel Foods Corp. has acquired Cidade do Sol, a Brazilian meat processor, for approximately $104 million. Cidade do Sol processes such value-added products as mortadella, sausage and salami. The products are sold both in retail and food service under the Ceratti brand.
|Jim Snee, president and CEO of Hormel Foods
“Strategic international growth is important to Hormel Foods and South America has been of interest to us for several years,” said Jim Snee, president and CEO of Hormel Foods. “The Ceratti brand has a strong family ownership and a rapidly-growing distribution of its portfolio of value-added products. This acquisition is a strategic fit for Hormel Foods, provides us an initial entry into the Brazilian market and will serve as a platform for future growth in South America.”
The acquired business will become a part of Hormel Foods’ International business unit.
|Larry Vorpahl, group vice president of Hormel Foods and president of Hormel Foods International
“The acquisition of the Ceratti brand allows us to enter the fast-growing Brazilian market with a premium brand,” said Larry Vorpahl, group vice president of Hormel Foods and president, Hormel Foods International Corp. “The Ceratti brand is poised for continued growth given its strong reputation in the market and outstanding products.
“This acquisition allows us to establish a full in-country presence with an excellent team of professionals in sales, marketing, operations, logistics and accounting. We are committed to continued international expansion and, with the addition of the Ceratti brand, our global footprint will continue to grow.”
The acquisition is Hormel Foods’ second during the month of August. On Aug. 17 the company entered into an agreement to acquire Fontanini Italian Meats and Sausages, McCook, Illinois, a branded food service business, for approximately $425 million. Fontanini manufactures Italian meats and sausages as well as a variety of other premium meat products, including pizza toppings and meatballs.