Hormel Foods, the global branded food company based in the USA, has entered into a definitive agreement to sell its Brazilian operations to Zanchetta Alimentos, a Brazilian food company.
Operating under the Ceratti brand, the business offers meats such as mortadella, sausage and salami for the Brazilian retail and foodservice markets. Financial details of the transaction were not disclosed. According to source, the divestiture reflects the company’s ongoing efforts to streamline its portfolio and focus its international strategy on markets with stronger long-term growth opportunities.
Hormel Foods entered Brazil in 2017 after acquiring Ceratti owner Cidade do Sol for $104 million. However, interim CEO Jeffrey Ettinger previously stated that the Brazilian market had been “challenged” and had acted as a “drag” on overall performance, hurting the international segment’s ability to deliver on growth objectives.
The sale is expected to close in the coming weeks, subject to customary closing conditions and required regulatory approval. Operations will continue as usual until the transaction closes.
Source: Food Dive / Investing.com
