Hormel to Buy Brakebush for $1.055 Billion in Major Value Added Chicken Deal

Hormel Foods has agreed to acquire Brakebush Brothers for approximately US$1.055 billion, giving the branded food company a much larger position in value added chicken and foodservice.

Brakebush generated about US$1.2 billion in net sales over the last 12 months and operates five production facilities and two research and development laboratories, according to Hormel's September 30 announcement.

Founded in 1925 and headquartered in Westfield, Wisconsin, Brakebush supplies processed raw and cooked chicken products to national and regional foodservice operators.

Hormel says the acquisition will expand its Foodservice platform, adding scale in a protein category where the company sees long term growth and giving it a broader direct sales network and customer base.

The transaction also continues Hormel's portfolio reshaping. The company has been moving toward value added protein while reducing exposure to more commodity driven businesses, including the earlier sale of its whole bird turkey operation and its Ceratti business in Brazil.

Hormel expects Brakebush to be reported primarily within its Foodservice segment and says the acquisition should become accretive to adjusted earnings per share beginning in fiscal 2028.

The deal is expected to close in the first quarter of Hormel's fiscal 2027, subject to customary conditions including regulatory approval. Until closing, Brakebush remains separately owned and operated.

For the U.S. protein sector, the transaction combines a large branded food company with a century old specialist in further processed chicken, increasing Hormel's exposure to restaurant and institutional demand rather than only retail packaged meats.