Following its August 2014 acquisition of Muscle Milk maker, CytoSport Holdings Inc., Hormel Foods Corp. is in the late stages of negotiation to acquire the privately held, organic bacon, sausage, and hot dog producer, Applegate Farms LLC.
Sources close to the matter state that the deal which could be announced as early as next week, would value the New Jersey-based Applegate, (in which private equity firm Swander Pace invested an undisclosed amount in 2009), between $600 million and $1 billion.
This transaction follows a spike in high profile deals in the sector, including Hershey Co.’s acquisition of the jerky company, Krave, Post Holdings Inc.’s acquisition of Michael Foods for $2.5 billion, and Tyson Foods acquisition of packaged, branded meat company, Hillshire Brands. The wave of activity does not give indications of slowing either, as sources have also reported that the private equity owners of protein and sandwich supplier, AdvancePierre Foods are interviewing banks for a near term sale of that company as well.
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