Hormel to Buy Fontanini Italian Meats and Sausages for $425M
Hormel Foods Corp. committed to a $425 million deal to acquire Fontanini Italian Meats and Sausages, a Chicago-based supplier of premium meat products such as pizza toppings and meatballs for the foodservice industry.
Jim Snee, chief executive of Austin-based Hormel said the deal would be complementary to both companies. “The addition of these products to our portfolio will allow us to accelerate growth for both Hormel Foods food service and for Fontanini through expanded distribution and new customers,” he said.
Hormel currently serves a number of businesses in the food service industry, particularly hotels, restaurants, hospital cafeterias, and college and university dining halls.
Fontanini, which primarily provides meat products for restaurants, is a division of Capitol Wholesale Meats Inc., based in McCook, Illinois.
Capitol was founded in 1960 as a butcher shop in Chicago before the company relocated to a larger facility on Randolph Street, considered to be part of the city’s “old Italian neighborhood.” Today, Capitol’s products, including what’s made for its Fontanini division, are produced in an 188,000-square-foot facility in McCook, which the family-owned company claims is state of the art.
“Through this business, the Fontanini family has left its mark on the world. Partnering with Hormel Foods will allow us to expand that mark,” said Gene Fontanini, chief executive of Capital, in a statement. “This acquisition will allow Fontanini to strengthen under the Hormel Foods umbrella given its leadership in retail combined with our shared leadership in food service.”
Into the future, Hormel may even utilize Capitol’s facility for more than just Fontanini products, according to Jeff Baker, group vice president of food service at Hormel. “While we are focused on ensuring a seamless transition and continued stewardship of the Fontanini brand, we are also excited about leveraging their new state-of-the-art production facility, which has additional capacity to produce many Hormel Foods products,” he said.
Hormel said it would provide further details about the deal during its third quarter conference call, scheduled to take place the morning of August 24.