Hormel Foods is to buy dairy protein firm Century Foods International in a $115 million cash transaction, it said yesterday. The move is said to be part of a bid to enhance Hormel's position in the growing specialty foods segment.
The $6 billion category of sports nutrition supplements and functional foods has recorded very strong growth in recent years with consumer sales in this market growing 15 per cent in 2001, driven by increasing health awareness. Hormel has evidently decided to jump on the bandwagon while the market is still hot, moving away from its traditional ready-prepared meats and food products.
Sparta, Wisconsin-based Century Foods has annual revenues of $125 million and specialises in dairy proteins and blends, and cheese products for use in whey protein powders, protein drinks and nutrition bars.
"Century Foods International's extensive portfolio will significantly strengthen our existing product offerings through our specialty foods group," said Joel W. Johnson, chairman of the board, president and chief executive officer at Hormel Foods.
Gary Paxton, vice president of the specialty foods group of Hormel Foods, will oversee the new business.