Hormel Foods has agreed to acquire family-owned chicken processor Brakebush Brothers for $1.06 billion, expanding its exposure to the growing market for protein-focused foods.
Wisconsin-based Brakebush generated nearly $1.2 billion in net sales during the last 12 months, according to Hormel. The company produces raw and cooked chicken products including wings, patties and nuggets.
Brakebush has remained under family ownership since 1925.
Hormel said it expects the transaction to close during the first quarter of its 2027 fiscal year and expects the acquisition to contribute positively to adjusted earnings per share beginning in fiscal 2028.
Hormel shares rose about 2% in premarket trading following the announcement.
The acquisition comes as food companies compete for demand tied to higher-protein diets and as Hormel attempts to strengthen growth after recently lowering its annual sales forecast following weaker-than-expected third-quarter sales.
Hormel already owns a broad portfolio of packaged-food brands, including Skippy and Applegate. Adding Brakebush gives the company greater exposure to processed chicken, a category positioned differently from several of its established packaged-meat businesses.
The purchase price represents roughly 0.9 times Brakebush’s reported trailing sales, although that simple comparison does not account for earnings, debt, cash or other transaction adjustments.
Investors should watch regulatory clearance, financing details, integration costs and whether Hormel can achieve the earnings contribution it expects beginning in fiscal 2028.
