AUSTIN, Minn. – Hormel Foods Corp. announced the closing of the company’s acquisition of Hayward, California-based Columbus Manufacturing Inc. and raised its guidance for fiscal year 2018.
“The acquisition of Columbus is the catalyst for uniting all our deli businesses into one group,” Jim Snee, chairman of the board, president and CEO, said in a statement. “We received regulatory approval faster than anticipated and are excited to start building a stronger, more united deli organization.”
Following the announcement, Hormel raised its fiscal 2018 guidance for net sales to $9.7 - $10.1 billion, and increased its earnings per share guidance to $1.62 - $1.72 per share.
Hormel acquired Columbus for approximately $850 million. Columbus reported total annual sales of approximately $300 million with an expected growth rate of more than 5 percent. Hormel expects the acquisition to be modestly accretive to earnings per share in fiscal 2018. The company expects the addition of the Columbus Craft brand to further strengthen Hormel’s position in the deli segment.