Hormel Foods sells Farmer John, Saag’s Specialty Meats, and three farms
The transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to close within 30 days.
“We appreciate the Farmer John, Saag’s and PFFJ employees’ dedication and commitment to their customers and consumers. While the businesses have performed well, they no longer align with our company’s growth strategies,” said Jim Snee, president and CEO.
“This divestiture also allows for the integration of the pork processing facility at Farmer John with the majority of the live production operations which supply the facility, and are currently owned by Smithfield. We will work together to ensure a smooth transition for our employees and customers.”
The purchase price was $145 million in cash, subject to working capital adjustments at closing.
Farmer John harvests approximately 7,400 hogs per day and, in fiscal 2016, the businesses accounted for approximately $500 million in sales and earnings per share of approximately 3 cents. ■