Hormel Foods has entered into a definitive agreement to acquire Brakebush Brothers for approximately $1.055 billion, expanding its presence in value-added chicken and strengthening its Foodservice business. The transaction is expected to close during the first quarter of Hormel Foods’ fiscal 2027, subject to regulatory approval and other customary closing conditions.
Founded in 1925 and headquartered in Westfield, Wisconsin, Brakebush is a value-added chicken producer serving national and regional foodservice operators. The company generated approximately $1.2 billion in net sales during the last 12 months and operates five production facilities and two research and development labs.
Hormel Foods sees value-added chicken as an attractive growth category and expects Brakebush to significantly increase its scale in the market. The acquisition will also add Brakebush’s direct sales organization, category expertise, customer relationships, and manufacturing capabilities to Hormel’s existing Foodservice platform.
Hormel expects the acquisition to generate growth, create operational synergies, and strengthen cash flow. Brakebush is expected to become accretive to Hormel Foods’ adjusted earnings per share beginning in fiscal 2028, with its results primarily reported through Hormel’s Foodservice segment.
Brakebush’s business is differentiated by its focus on further-processed chicken rather than vertically integrated poultry production. Its products are sold across a diverse base of foodservice customers, giving Hormel additional exposure to restaurants and other food-away-from-home channels.
Hormel said the transaction fits its long-term strategy of allocating capital toward categories, channels, and capabilities with attractive growth potential while adding a scaled business with more than a century of operating history.
Support: Wells Fargo is serving as Hormel Foods’ exclusive financial adviser, while William Blair is serving as Brakebush’s exclusive financial adviser.
KEY QUOTES:
“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. 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.”
Jeff Ettinger, Interim Chief Executive Officer of Hormel Foods
“Chicken has been one of the most attractive growth categories in protein, and Brakebush has built an exceptional platform to serve that demand. 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.”
John Ghingo, President and Chief Executive Officer-Elect of Hormel Foods
“Brakebush has always been a people-first company, built on strong relationships, shared values and a commitment to doing business the right way. 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.”
Carey Brakebush, Chairman of the Board of Brakebush
