Hormel agrees to buy chicken processor Brakebush

Hormel Foods has agreed to buy Brakebush Brothers from the Brakebush family for approximately $1.055 billion, a proposed purchase that would expand its chicken business with a processor serving national and regional foodservice operators.

In its September 30 announcement, Hormel said it expects the transaction to close during the first quarter of its fiscal 2027, subject to customary closing conditions, including regulatory approval. Hormel said Brakebush generated approximately $1.2 billion in net sales over the preceding 12 months and operates five production facilities and two research and development labs.

Brakebush says it sources raw chicken from outside suppliers. Its plants portion raw chicken, partially fry it or fully cook it. Other capabilities include sizing breast fillets, coating, marinating, searing and roasting. Alongside its large production lines, it has smaller lines for startup products and lower volumes.

Its distribution network includes independent and broadline distributors and redistributors. Brakebush also operates its own transportation fleet and has a direct national sales force.

Custom development is another part of the business. Brakebush says its teams work with national chains to understand their requirements and develop a product from prototype to finished form. It separately describes work for industrial ingredient customers on flavor, coatings, size and texture.

Hormel says Brakebush's direct sales organization and customer relationships would broaden its foodservice reach. It expects to report Brakebush's results primarily in its Foodservice segment.