Hormel Foods acquires Brazil’s Cidade do Sol for $104m
US-based Hormel Foods has purchased Brazilian meat company Cidade do Sol for approximately $104m, marking the former’s entry into the South American market.
Cidade do Sol offers a wide range of meat products, including mortadella, sausage and salami, for Brazilian retail and foodservice markets under the Ceratti brand.
Hormel Foods president and chief executive officer Jim Snee said: "Strategic international growth is important to Hormel Foods and South America has been of interest to us for several years.
"The Ceratti brand has a strong family ownership and a rapidly growing distribution of its portfolio of value-added products. This acquisition is a strategic fit for Hormel Foods, provides us with an initial entry into the Brazilian market and will serve as a platform for future growth in South America."
Cidade do Sol has been offering traditional brands of cold cuts in Brazil for more than 80 years.
The company supplies more than 70 products segregated in 15 different categories, in various flavours.
The company claims that it complies with all the regulations required in Brazil, in addition to having a series of inspection procedures to ensure product quality.
Upon completion of the deal, which is subject to customary working capital adjustments, Cidade do Sol will report to Hormel Foods International.
Hormel Foods was advised by HT Capital Advisors, Faegre Baker Daniels, and TozziniFreire Advogados.