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Hormel Foods agreed to acquire family-owned Brakebush Brothers for $1.055 billion. The Wisconsin company generated about $1.2 billion in net sales last year and primarily serves foodservice customers; the deal is expected to close in the first quarter of Hormel’s 2027 fiscal year.
Hormel Foods has agreed to buy Brakebush Brothers, a Wisconsin-based producer of value-added chicken products, for $1.055 billion. The acquisition would add a large foodservice-focused chicken business to the Spam maker’s portfolio as it seeks to expand in protein categories; Hormel expects the deal to close in the first quarter of its 2027 fiscal year.
Brakebush is a family-owned company founded in 1925 and headquartered in Wisconsin. It predominantly serves foodservice customers and recorded approximately $1.2 billion in net sales during the last year, according to the report. Hormel said the acquisition would bring additional scale, expertise and customer reach to its foodservice operations.
The expected closing period is the first quarter of Hormel’s 2027 fiscal year, which ends in late January. The announcement does not specify an exact closing date. The reported information also does not detail how the purchase will be financed or describe any conditions that must be met before closing.
Hormel has a broad protein-focused portfolio spanning its namesake meat products, Spam, Jennie-O turkey, Applegate organic meats, Planters nuts and Skippy peanut butter. Brakebush would add value-added chicken products to that mix, with a customer base concentrated in foodservice, including businesses that serve prepared meals.
A Larger Foodservice Chicken Business
The purchase would give Hormel a larger position in value-added chicken and add a business with substantial sales and established foodservice customers. That matters because foodservice has been a stronger area for Hormel recently even as parts of its retail business have faced pressure from consumers’ reluctance to spend amid inflation.
In its most recent quarter, Hormel’s foodservice business posted a 2% increase in organic net sales, according to the source report. The company lowered its fiscal 2026 net sales and organic net sales growth outlook amid declines in commodity turkey and private-label snack nuts, along with consumer spending concerns. The acquisition would expand the company’s exposure to a segment that has recently grown, though the announcement does not establish how much Brakebush will contribute to future growth.
The deal also reflects Hormel’s effort to build around protein demand. An International Food Information Council survey cited in the report found that 70% of Americans said they wanted more protein in their diets, compared with 59% four years earlier. That survey indicates consumer interest, but it does not establish how much demand will translate into purchases of Brakebush products or financial returns for Hormel.
Hormel’s Protein Portfolio
Hormel is a 135-year-old food company whose brands include Spam, Jennie-O turkey, Applegate, Planters and Skippy. Its sales have historically leaned toward retail, which accounts for more than 60% of the business, while foodservice makes up close to one-third, according to Food Dive. Adding Brakebush would increase the company’s presence in a channel that has recently shown growth.
Hormel President and incoming CEO John Ghingo has described protein as a source of resilience for the company amid broader consumer spending pressure. The source report also notes that wider use of GLP-1 weight-loss drugs has contributed to attention around protein intake, but it does not quantify the effect of those drugs on Hormel or Brakebush sales.
““Chicken has been one of the most attractive growth categories in protein, and Brakebush has built an exceptional platform to serve that demand.””
— John Ghingo, Hormel president and incoming CEO
Deal Terms and Closing Details
The announced price is $1.055 billion, but the available report does not explain the financing, any assumed debt, or other transaction terms. It also does not say whether the agreement includes regulatory or other closing conditions, or whether Brakebush will keep its current operating structure after the acquisition.
Hormel’s expected timing is a first-quarter fiscal 2027 closing, not a confirmed completion date. The source does not provide forecasts for the combined business, expected cost savings, or a projected contribution from Brakebush to Hormel’s earnings. Those details remain unconfirmed in the material provided.
The Path to Hormel Ownership
The next stated milestone is closing, which Hormel expects in the first quarter of fiscal 2027, ending in late January. Until then, the deal remains an agreement to acquire Brakebush rather than a completed purchase.
Further updates may clarify the transaction’s financing, any required approvals, and how Hormel plans to integrate the chicken producer into its foodservice business. The announcement as reported does not give a schedule for those details or identify additional milestones before closing.
Key Questions
How much is Hormel paying for Brakebush Brothers?
Hormel agreed to acquire Brakebush Brothers for $1.055 billion, according to the report.
What does Brakebush Brothers make?
Brakebush produces value-added chicken products and predominantly serves foodservice customers. The company was founded in 1925 and is headquartered in Wisconsin.
When is the acquisition expected to close?
Hormel expects the acquisition to close during the first quarter of its 2027 fiscal year, which ends in late January. No exact closing date was reported.
How large is Brakebush Brothers?
Brakebush generated approximately $1.2 billion in net sales during the last year, according to the source report.
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