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Hormel Foods to Acquire Brakebush Brothers in $1.06 Billion Deal
By Drooid · · How we work
Deal Overview
On September 30, Hormel Foods Corp. announced a definitive agreement to purchase Brakebush Brothers, LLC, a family-owned value-added chicken processor based in Westfield, Wisconsin. The transaction is valued at approximately $1.055 billion and is slated to close in the first quarter of Hormel’s fiscal 2027, pending customary closing conditions and regulatory approval.
Strategic Rationale
Hormel, the maker of Skippy peanut butter and the organic meat brand Applegate, is expanding its protein portfolio to meet growing consumer demand for protein-rich meals. Brakebush, operating five production facilities and two R&D labs, generated roughly $1.2 billion in net sales over the past 12 months and serves national and regional food-service customers. Hormel expects the acquisition to strengthen its Foodservice segment and to be accretive to adjusted earnings per share beginning in fiscal 2028.
Financial Details
The purchase price of $1.055 billion reflects Brakebush’s 2023 net sales of $1.2 billion. Wells Fargo is acting as Hormel’s exclusive financial advisor, while Faegre Drinker Biddle & Reath serves as legal counsel. For Brakebush, William Blair and Michael Best & Friedrich LLP are the exclusive financial and legal advisors, respectively. Hormel’s shares rose about 2 % in pre-market trading following the announcement.
Executive Perspectives
- “Brakebush is a highly respected leader in value-added chicken and has earned the trust of customers for more than 100 years through innovation, quality and exceptional relationships,” — Jeff Ettinger, interim chief executive officer
- “Chicken has been one of the most attractive growth categories in protein, and Brakebush has built an exceptional platform to serve that demand.” — John Ghingo, interim chief executive
- “We see those same qualities in Hormel Foods. Their culture, integrity and long-term approach to growth give us great confidence that Brakebush will continue to thrive for our employees, customers and communities in the years ahead,” — Carey Brakebush, chairman of the board at Brakebush
These statements underscore the long-standing reputation of Brakebush in the chicken market and Hormel’s confidence in the combined future.
Market Reaction & Outlook
Analysts view the deal as a logical step for Hormel to capture a larger share of the expanding chicken category, which has been identified as one of the most attractive growth segments in protein. The acquisition positions Hormel to leverage Brakebush’s innovation and customer relationships while delivering incremental earnings growth from fiscal 2028 onward.
