Hormel Foods buys Fontanini for $425m
Hormel, the maker of Spam canned pork, said the takeover of Chicago-based Fontanini Italian Meats and Sausages, a company producing premium meat-based pizza toppings and meatballs, would add value to its foodservice arm.
“This is a strategic acquisition for our high-growth foodservice division,” said Jim Snee, Hormel Foods’ CEO.
“We have delivered a strong track record of success in the foodservice industry, with a growing portfolio of customers in the lodging, restaurant, healthcare and college and university sectors.
“The Fontanini brand is highly regarded and the addition of these products to our portfolio will allow us to accelerate growth for both Hormel Foods’ foodservice and for Fontanini through expanded distribution and new customers.”
Fontanini will continue to operate out of its Chicago headquarters, but will report to its new parent company’s Refrigerated Foods segment.
Jeff Baker group vice-president of foodservice at Hormel Foods, said he was “excited” to use the company’s research and development, supply chain and robust finances to grow the “dynamic” Fontanini business.
“While we are focused on ensuring a seamless transition and continued stewardship of the Fontanini brand, we are also excited about leveraging their new state-of-the-art production facility, which hasadditional capacity to produce many Hormel Foods products.”
Gene Fontanini, CEO of Fontanini, said: “This acquisition will allow Fontanini to strengthen under the Hormel Foods umbrella given its leadership in retail combined with our shared leadership in foodservice. Through this business, the Fontanini family has left its mark on the world. Partnering with Hormel Foods will allow us to expand that mark. I couldn’t be more proud of all that we have accomplished and I look forward to seeing where we go next.”
