Hormel Foods announced last week that it has reached an agreement to sell its “whole-bird” turkey business to fellow Minnesota company Life-Science Innovations.
The owner of the Planters, Spam and Dinty Moore brands said the move was part of an effort to expand its “value-added protein portfolio” while reducing its exposure to “more volatile, commodity-driven businesses.” The deal would include a processing plant in Melrose, Minnesota, a feed mill in Swanville, Minnesota, and related assets; Hormel will retain its Jennie-O brand.
Life-Science Innovations is composed largely of companies derived from Willmar Poultry Company, including Willmar Poultry Farms and Turkey Valley Farms. LSI will assume Hormel’s supply contracts with third-party turkey growers, as well as provide co-manufacturing services to Hormel through the end of its current fiscal year.
The transaction is expected to close by the end of Hormel’s current quarter. Financial details were not disclosed.
"We are confident that this portion of our legacy turkey business will be in good hands under LSI’s ownership, given their deep experience and expertise in this area,” Jeff Ettinger, Hormel’s interim CEO, said in the announcement.
