Hormel Foods is in late-stage talks to acquire Applegate Farms LLC, a privately held producer of organic hot dogs, bacon and sausages, to enhance its branded protein offerings, people familiar with the matter said.
The potential deal could mean substantial growth for the Hormel Foods, which according to the WATT Global Media Top Companies database, is the fifth largest pig processor in the U.S. and Canada, and is the parent company of Jennie-O Turkey Store, the second largest turkey company in the United States.
A deal for Applegate Farms could be announced within days, sources who asked to remain anonymous told Reuters. The value of Applegate Farms is said to be between $600 million and $1 billion.
Private equity firm Swander Pace invested an undisclosed amount in Applegate Farms, headquartered in Bridgewater, New Jersey, in 2009. The company was founded in 1987 by current CEO Stephen McDonnell.
Hormel Foods’ most recent acquisition came in August 2014, when the company finalized the purchase of CytoSport Holdings Inc., the maker of sports nutrition drink Muscle Milk.
Hormel Foods is headquartered in Austin, Minnesota. Other Hormel Foods brands include Skippy, Spam, Dinty Moore, Farmer John, Don Miguel, Lloyd’s, House of Tsang, Chi-Chi’s, Saag’s, Stagg Chili and Doña María.