Hormel Commences 2-for-1 Stock Split, Expands HQ
Following record sales in 2010, Hormel Foods Corporation is commencing its planned stock split and an expansion of its corporate headquarters-and the company has begun giving back through a new anti-hunger initiative.
The Austin-based food manufacturer said Tuesday that stockholders have approved a two-for-one-stock split, which the company's board approved in December. All stockholders of record at the close of the business day on January 31 will receive one additional share of common stock for each share owned at that time.
The stock split is the company's first in 10 years and the ninth in its history. Hormel, one of Minnesota's 15-largest public companies, achieved a record $7.2 billion in annual revenue for the first time in its 119-year history for the fiscal year that ended in October-prompting the company to distribute $21.2 million in employee bonuses late last year.
Hormel Chairman, President, and CEO Jeffrey M. Ettinger said in December that the stock split “acknowledges our track record of providing our shareholders solid long-term returns and demonstrates our confidence that we will continue to grow our sales and earnings in the future,” adding that the move will also make Hormel's stock price more attractive to individual investors.
In addition to the stock split, a Hormel representative confirmed that the company plans to expand its corporate headquarters but declined to provide further details. According to the Austin Daily Herald, the expansion is expected to commence in March and be completed by winter 2011. It will reportedly extend the front of the main corporate office and stretch it into what's now the front lawn. The expansion-the first in 20 years, according to the Austin newspaper-will add a conference room, an auditorium, and a break room.
Hormel's recent success has prompted it to launch a new initiative to give back, the Austin Daily Herald also reported: Hormel's newest product, “Spammy,” will exclusively be used to fight hunger in Guatemala. A high-protein turkey-based spread that's fortified with vitamins and minerals, Spammy was created to provide nutrients needed by those who are malnourished.
A Hormel representative would not confirm details about the anti-hunger initiative but did reference its new product, Spammy, by name.
In conjunction with international humanitarian organizations Food for the Poor and Caritas, Hormel is reportedly distributing its product throughout Guatemala. In order to ensure that people who need Spammy will continue to receive it, Caritas has mandated that families return empty Spammy cans in order to receive a new month's supply of the spread.