Hormel Foods has agreed to acquire Brakebush Brothers, a family-owned value-added chicken processor, for approximately $1.055 billion. The deal supports Hormel's strategy of investing in growing protein categories and expands its presence in value-added chicken products. Brakebush, based in Westfield, Wis., generated around $1.2 billion in sales over the last 12 months and serves a diverse foodservice customer base with fully cooked, par-fried, and raw portioned products.

Hormel expects the acquisition to strengthen its foodservice platform through enhanced operator relationships and an expanded direct-sales organization. The Austin, Minn.-based company, known for Spam and Skippy brands, will fund the deal with cash on hand and new debt while maintaining strong investment-grade credit ratings. The acquisition follows Hormel's recent report of declining quarterly sales and trimmed fiscal 2026 guidance amid lower prices for raw turkey and private-label snack nuts.

Despite these challenges, Hormel's foodservice business posted 2% sales growth in the quarter. The transaction is expected to close during Hormel's fiscal first quarter, ending in late January.