AUSTIN, MN — Hormel Foods Corporation, a global branded food company, announced Thursday that it has reached an agreement to acquire Texas-based Sadler's Smokehouse. Sadler's Smokehouse is a family-owned business that specializes in premium and authentic pit-smoked meats for retail and foodservice customers. Hormel Foods has been a customer of Sadler's Smokehouse for over two decades.
"Sadler's Smokehouse is a great company with an impressive history, talented team and an outstanding portfolio of on-trend products that resonate with consumers, customers and operators," said Jim Snee, chairman of the board, president and chief executive officer at Hormel Foods. "This is a very strategic acquisition for our foodservice business and it gives us another successful brand to expand into the retail and deli channels."
"Hormel Foods has an excellent reputation as one of the best food companies in the world," said Harold J. Sadler, owner, Sadler's Smokehouse. "We are excited for our employees and family knowing Hormel Foods will continue the Sadler family legacy."
Sadler's Smokehouse will continue operations from the Henderson, TX facility and will report into the Refrigerated Foods segment. The transaction was structured as an asset sale and is expected to close in March 2020, subject to customary closing conditions.
Hormel also reported its 2020 first quarter fiscal results on Thursday. Q1 sales of $2.4 billion were up approximatley 1 percent, with organic sales up 4 percent. Volume of 1.2 billion lbs. was down 1 percent, with organic volume up 2 percent. Net earnings of $243 million were flat.