Hormel Foods to acquire Brakebush Brothers for US$1.05B
The acquisition will expand Hormel’s value-added chicken portfolio and foodservice capabilities as the company reshapes its protein business through strategic portfolio changes.
USA – Hormel Foods has agreed to acquire family-owned chicken producer Brakebush Brothers for approximately US$1.055 billion, expanding its position in value-added chicken and strengthening its foodservice business.
The transaction, announced September 30, is expected to close in the first quarter of Hormel’s 2027 financial year, subject to regulatory approval and other customary conditions.
Hormel said the acquisition advances its strategy of investing in growing protein categories and will expand its value-added chicken portfolio, while adding operator relationships, category expertise and a direct sales organisation to its foodservice platform.
Brakebush, headquartered in Westfield, Wisconsin, was founded in 1925 and serves foodservice, retail and out-of-home customers. The family-owned company generated approximately US$1.2 billion in net sales over the past 12 months and operates five production facilities and two research and development laboratories.
John Ghingo, Hormel’s president and incoming chief executive, said chicken remains a category for the company.
“Chicken has been one of the most attractive growth categories in protein, and Brakebush has built an exceptional platform to serve that demand,” Ghingo said.
“We believe that Brakebush will bolster our capabilities, bringing additional scale, expertise and customer reach, in support of our long-term growth strategy,” he added.
Hormel’s branded chicken portfolio sold through retail includes Applegate and Hormel Natural Choice, alongside its Jennie-O turkey business.
Jeff Ettinger, Hormel’s interim CEO, described Brakebush as a highly respected leader in value-added chicken and said its talented team, strong culture and differentiated capabilities make it an excellent fit for Hormel Foods.
The acquisition follows a series of portfolio changes by Hormel. In February, the company agreed to sell its US whole-bird turkey operations to Life-Science Innovations, excluding its turkey portfolio. In June, Hormel agreed to sell its Brazilian business, including Ceratti production operations, to Zanchetta Alimentos.
Hormel also agreed last year to separate its Justin’s nut butter and chocolate snacks business from the company through an agreement with Forward Consumer Partners.
Ghingo was appointed CEO in July and is scheduled to take over from Ettinger on October 26. Both executives will remain on Hormel’s board.
Hormel expects the Brakebush acquisition to contribute to adjusted earnings per share beginning in fiscal 2028, with Brakebush’s results expected to be reported within its Foodservice segment.
The deal comes as Hormel adjusts its 2026 outlook. In August, the company lowered its organic sales growth forecast to 1% to 2%, from 1% to 4%, and projected net sales of US$12.1 billion to US$12.2 billion. It raised its adjusted operating income outlook to US$1.08 billion to US$1.12 billion.
Hormel said the acquisition will expand its scale, capabilities and customer reach in value-added chicken while supporting its growth strategy.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
