Hormel Foods Corporation has entered into a definitive agreement to acquire value-added chicken producer Brakebush Brothers, LLC from the Brakebush family for approximately $1.055 billion.
The transaction is scheduled to complete during the first quarter of Hormel Foods' fiscal 2027, subject to customary closing conditions and regulatory approvals. The acquisition represents an expansion of Hormel's protein portfolio, integrating a specialised value-added poultry platform into its core Foodservice business segment.
Hormel Foods expects the transaction to generate commercial growth, unlock manufacturing and distribution synergies, and enhance enterprise cash flows. The group projects the business will be accretive to adjusted earnings per share (EPS) starting in fiscal 2028.
"Brakebush is a highly respected leader in value-added chicken and has earned the trust of customers for more than 100 years through innovation, quality and exceptional relationships," said Jeff Ettinger, Interim Chief Executive Officer of Hormel Foods.
"The company's talented team, strong culture and differentiated capabilities make it an excellent fit for Hormel Foods. Our industry-leading Foodservice business has been a source of growth, and we are excited to meaningfully expand our presence in value-added chicken."
John Ghingo, President and Chief Executive Officer-Elect of Hormel Foods, added: "Chicken has been one of the most attractive growth categories in protein, and Brakebush has built an exceptional platform to serve that demand. Hormel Foods has built a strong Foodservice business by helping operators succeed through innovation, service and value-added solutions. We believe that Brakebush will bolster our capabilities, bringing additional scale, expertise and customer reach, in support of our long-term growth strategy."
Brakebush Scale and Industrial Footprint
Established in 1925 and headquartered in Westfield, Wisconsin, Brakebush operates as a non-vertically integrated manufacturer of further-processed, value-added chicken products, serving national and regional foodservice operators across the United States.
Over the past 12 months, Brakebush generated approximately $1.2 billion in net sales. The business supports its commercial processing operations through:
Manufacturing Infrastructure: Five dedicated poultry production facilities situated across key regional hubs.
Product Development: Two active research and development laboratories focused on culinary formulation, breading systems, and bespoke operator specifications.
Commercial Reach: A dedicated direct sales force maintaining distribution ties across commercial hospitality, commercial chains, healthcare, and educational catering institutions.
Upon completion of the transaction, Hormel Foods plans to report the financial and operational performance of Brakebush primarily within its Foodservice segment.
Non-Vertically Integrated Poultry Model
The transaction provides Hormel Foods with scaled processing infrastructure in value-added cooked and breaded poultry without the commodity volatility linked to live bird rearing.
As a non-vertically integrated processor, Brakebush procures raw poultry cuts directly from primary slaughterhouses and upstream poultry integrators, concentrating its capital expenditure on cooking, seasoning, portioning, breading, and quick-freezing operations. This operating structure allows the business to mitigate the direct feed and agricultural input exposures that impact live-production poultry integrators.
"Brakebush has always been a people-first company, built on strong relationships, shared values and a commitment to doing business the right way," said Carey Brakebush, Chairman of the Board at Brakebush. "We see those same qualities in Hormel Foods. Their culture, integrity and long-term approach to growth give us great confidence that Brakebush will continue to thrive for our employees, customers and communities in the years ahead."
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