The transaction was structured as an asset sale with a purchase price of $425 million, subject to customary working capital adjustments. Hormel Foods Corporation announced it has acquired Fontanini Italian…

The transaction was structured as an asset sale with a purchase price of $425 million, subject to customary working capital adjustments.

Hormel Foods Corporation announced it has acquired Fontanini Italian Meats and Sausages, a branded foodservice business, from Capitol Wholesale Meats, Inc. The company is based in the Chicago metropolitan area and specializes in authentic Italian meats and sausages, as well as a variety of other premium meat products including pizza toppings and meatballs.

“This is a strategic acquisition for our high-growth foodservice division. We have delivered a strong track record of success in the foodservice industry with a growing portfolio of customers in the lodging, restaurant, healthcare and college and university sectors,” said Jim Snee, president and chief executive officer at Hormel Foods. “The Fontanini brand is highly regarded, and the addition of these products to our portfolio will allow us to accelerate growth for both Hormel Foods foodservice and for Fontanini through expanded distribution and new customers.”

Fontanini will continue operations out of their facility in the Chicago metropolitan area and will report into the Refrigerated Foods segment.

The transaction was structured as an asset sale with a purchase price of $425 million, subject to customary working capital adjustments.