Hormel Foods Corp. will pay approximately $1.055 billion to acquire Brakebush Brothers LLC, a family-owned value-added chicken company that generated roughly $1.2 billion in net sales over the last 12 months.

The Austin, Minn.-based Fortune 500 processor announced a definitive agreement with the Brakebush family on September 30. The transaction is expected to close during the first quarter of Hormel's fiscal 2027, subject to customary closing conditions including regulatory approval.

Hormel, with more than $12 billion in annual revenue and brands including Planters, Skippy, SPAM, Jennie-O and Applegate, plans to report Brakebush's results primarily in its Foodservice segment. The deal is the company's latest move to concentrate capital in growing protein categories.

"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," said Jeff Ettinger, Hormel Foods interim chief executive officer. "Our industry-leading Foodservice business has been a source of growth, and we are excited to meaningfully expand our presence in value-added chicken."

President and chief executive officer-elect John Ghingo framed the acquisition around category momentum. "Chicken has been one of the most attractive growth categories in protein, and Brakebush has built an exceptional platform to serve that demand," he said. "We believe that Brakebush will bolster our capabilities, bringing additional scale, expertise and customer reach, in support of our long-term growth strategy."

Founded in 1925 and headquartered in Westfield, Wis., Brakebush operates as a non-vertically integrated, further-processed chicken supplier serving national and regional foodservice operators. The company runs five production facilities and two research and development labs, with additional sites in Mocksville, N.C.; Irving, Texas; Wells, Minn.; and Hartwell, Ga.

That non-integrated structure distinguishes Brakebush from the large integrated poultry processors and keeps Hormel's exposure focused on further processing and foodservice distribution rather than live-bird production.

Carey Brakebush, chairman of the board, said the family saw cultural alignment in the buyer. "Brakebush has always been a people-first company, built on strong relationships, shared values and a commitment to doing business the right way," he said. "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."

Hormel expects the acquisition to generate growth, unlock operational synergies and enhance cash flows. The company projects the deal will be accretive to adjusted earnings per share beginning in fiscal 2028 — a timeline that separates near-term integration costs from expected long-run returns, and one investors can track against Hormel's Foodservice segment reporting once the deal closes.

Beyond category exposure, Hormel cites Brakebush's direct sales organization and operator relationships as a platform to expand Foodservice reach across national and regional accounts. Company leadership also noted that acquisition opportunities of this scale and reputation in value-added chicken are uncommon, positioning the purchase as a disciplined portfolio move rather than opportunistic consolidation.

Wells Fargo is acting as exclusive financial advisor to Hormel Foods, with Faegre Drinker Biddle & Reath as legal counsel. William Blair serves as exclusive financial advisor to Brakebush, with Michael Best & Friedrich LLP as legal counsel.

With regulatory approval pending and a fiscal 2027 first-quarter closing target, Hormel's next test will be converting a $1.055 billion outlay into the projected adjusted-EPS accretion by fiscal 2028.