Hormel Acquisition of Arriba Foods Inc.
For Immediate Release
AUSTIN, MINN. (Jan. 31, 2005) - Today, Hormel Foods Corporation (NYSE: HRL) announced the acquisition of Arriba Foods Inc., one of the premier manufacturers and marketers of Mexican food products, for $47 million in cash. The company was purchased from Chicago, Ill.- based Arbor Private Investment Company, L.P.
The operating units of Arriba Foods, Mexican Accent Inc. and Rio Real Inc., based in New Berlin, Wis., manufacture and distribute a wide variety of premium Mexican flour tortillas, corn tortillas, salsas, seasonings and tortilla chips for retail markets and the foodservice industry. These products are marketed under the Manny’s, Gringo Pete’s and Mexican Accent brands.
Manny’s tortillas are the number one selling brand of flat-packaged shelf stable tortillas in the eastern half of the United States. Gringo Pete’s flour tortillas and corn tortillas, available in the refrigerated case, and Mexican Accent flour tortillas and corn tortillas, sold to foodservice operators, also enjoy strong market share.
In 2004, the company introduced an innovative line of Manny’s fresh dinner kits comprised of soft and hard taco shells, soft tortillas, sauce and seasoning mix.
Arriba Foods has manufacturing and administrative operations in New Berlin. The company has approximately 150 employees.
“Arriba Foods offers an impressive array of high quality products that will be immediately accretive to our Grocery Products business segment,” said Joel W. Johnson, chairman of the board and chief executive officer with Hormel Foods. “These products will further strengthen our growing presence in the ethnic products category.”
Hormel Foods currently markets various Mexican salsas, sauces and other products under the Chi-Chi’s, Herdez, Doña María and Búfalo brands.
For more information, please contact Gregory Purcell (312-981-3780) or Joseph Campolo (312-981-3781).