Hormel Foods Buys Brazilian Meat Firm Cidade do SolHormel Foods Buys Brazilian Meat Firm Cidade do Sol

Hormel Foods Corporation announced its $104 million acquisition of Brazilian meat firm Cidade do Sol on Thursday, marking the Austin, MN-based company’s first entry into South American markets.

“Strategic international growth is important to Hormel Foods and South America has been of interest to us for several years,” Jim Snee, president and chief executive officer of Hormel Foods, said in a statement. “The Ceratti brand has a strong family ownership and a rapidly-growing distribution of its portfolio of value-added products. This acquisition is a strategic fit for Hormel Foods, provides us entry into the Brazilian market, and will serve as a platform for future growth in South America.”

Cidade do Sol sells a number of meat products, including mortadella, sausage, and salami, under the Ceratti brand to foodservice and retail customers in Brazil.

“The acquisition of the Ceratti brand allows us to enter the fast-growing Brazilian market with a premium brand,” said Larry Vorpahl, group vice president of Hormel Foods and president of Hormel Foods Corporation, in a company press release. “The Ceratti brand is poised for continued growth given its strong reputation in the market and outstanding products.”

Hormel said the sale is subject to customary working capital adjustments.

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