Provena Foods Inc. a leading provider of pepperoni announced that it has entered into a definitive merger agreement with Hormel Foods Corporation.
With the acquisition of Provena by Hormel Foods Corporation (Austin, MN) each share of Provena’s common stock will be cancelled and converted into the right to receive 0.08 shares of Hormel Foods common stock. Including net assumed debt for borrowed money of approximately $6.2 million and a price per share of Hormel Foods common stock of $37.50, the transaction has an enterprise value of approximately $16.8 million.
The deal has been approved by the boards of both companies but is subject to customary closing conditions. It is expected to be complete by the end of the year.
With Provena producing pepperoni and Italian-style sausage for sale to pizza chains, food processors and foodservice distributors Hormel Foods gets an approach to a west-coast production capacity.
Source: Hormel Foods Corporation, Austin, MN