Hormel Foods has completed the acquisition of Provena Foods of Chino, Calif., for a purchase price of approximately $12 million plus the assumption of about $6 million in debt. The company anticipates annual sales of $60 million.
"Our acquisition of Provena Foods further strengthens the capabilities within our Refrigerated Foods business segment," says Jeffrey Ettinger, chairman of the board, president and chief executive officer of Hormel Foods. "We have the number one position in pepperoni at retail and a growing position in meat toppings and pepperoni products in foodservice. This acquisition will enhance that aspect of our business by providing additional production capacity."
Under the terms of the agreement, each outstanding share of Provena common stock was converted into the right to receive 0.08 shares of Hormel Foods common stock. Approximately 296,000 shares of Hormel Foods common stock are expected to be issued to the Provena shareholders.
Provena Foods is a manufacturer and distributor of pepperoni and pasta to pizza makers and packaged food manufacturers. Provena's products are sold throughout the
Source: Business Wire