Hormel Foods to Acquire Chicken Processor Brakebush for $1.06 Billion

Hormel Foods announced on Wednesday it has entered into a definitive agreement to acquire family-owned chicken processor Brakebush Brothers for $1.06 billion. The move is intended to significantly expand the protein portfolio of the company known for brands like Skippy peanut butter and Applegate organic meats.

Deal Details

The acquisition targets Brakebush Brothers, a Westfield, Wisconsin-based company that has been operated by the Brakebush family since its founding in 1925. The firm specializes in processed raw and cooked chicken products, including patties, wings, and nuggets.

Brakebush is a significant player in its segment, generating nearly $1.2 billion in net sales over the last 12 months, according to the announcement. Hormel stated that the transaction is expected to close in the first quarter of its fiscal year 2027.

Strategic Rationale and Financial Impact

Ad

This acquisition aligns with Hormel's strategy to capitalize on the sustained consumer trend toward protein-rich meals, driven by health and wellness preferences. By integrating Brakebush's operations, Hormel strengthens its offerings in the value-added chicken category.

Hormel anticipates the deal will become accretive to its adjusted earnings per share beginning in fiscal year 2028. The move comes after the company recently lowered its annual sales forecast following a third-quarter sales miss, as reported last month.

Market Reaction

Investors reacted positively to the news. In premarket trading on Wednesday, shares of Hormel Foods (NYSE: HRL) rose by approximately 2%, according to Reuters. The market's initial response suggests confidence in the strategic value of the acquisition.