Hormel Foods has bought Fontanini Italian Meats and Sausages for $425 million from Capitol Wholesale Meats as it adds to its foodservice portfolio.
Chicago-based Fontanini specialises in Italian meats, as well as other premium meat products including pizza toppings and meatballs.
Following completion of the deal, Fontanini will continue operations out of its facility in Chicago and will report into the refrigerated foods segment of Hormel.
Hormel CEO Jim Snee said: “This is a strategic acquisition for our high-growth foodservice division. 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.”
Gene Fontanini, CEO of Capitol Wholesale Meats, praised the reputation of Hormel and its track record of acquiring family-owned businesses.
“This acquisition will allow Fontanini to strengthen under the Hormel Foods umbrella given its leadership in retail combined with our shared leadership in foodservice,” he said.
“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.”
Other Hormel brands include include Skippy, Spam, Applegate, Justin’s and Wholly Guacamole.
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