Hormel Foods Corp. (NYSE:HRL) said Wednesday it agreed to acquire privately held Brakebush Brothers LLC for about $1.055 billion, expanding its presence in value-added chicken and foodservice.

The transaction is expected to close in Hormel’s fiscal first quarter of 2027, subject to regulatory approval and other customary conditions.

Expands in Value-Added Chicken

Brakebush, founded in 1925 and based in Westfield, Wisconsin, generated about $1.2 billion in net sales over the past 12 months.

The company operates five production facilities and two research and development labs. It supplies value-added chicken products to national and regional foodservice customers.

Hormel said the deal will strengthen its position in a growing protein category. It also expects Brakebush’s direct sales network and customer relationships to expand its Foodservice business.

Interim CEO Jeff Ettinger said Brakebush’s scale, capabilities and customer relationships make it a strong fit for Hormel.

CEO-elect John Ghingo said the acquisition should give Hormel greater scale, expertise and customer reach as demand for chicken continues to grow.

Earnings Boost Expected in Fiscal 2028

Hormel expects the acquisition to support growth, create operational synergies and improve cash flow.

The company expects the transaction to add to adjusted earnings per share beginning in fiscal 2028. It plans to report Brakebush’s results primarily within its Foodservice segment.

The deal also represents a sizable capital commitment for Hormel. The company held $840 million in cash, excluding assets held for sale, as of July 26, 2026.

Wells Fargo is serving as Hormel’s exclusive financial adviser, while Faegre Drinker Biddle & Reath is its legal counsel. William Blair is advising Brakebush, with Michael Best & Friedrich serving as legal counsel.

Hormel Price Action

HRL Price Action: Hormel Foods shares were up 0.98% at $20.04 at the time of publication on Wednesday, according to Benzinga Pro data.

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