Hormel Foods’ $104 million Acquisition of Cidade do Sol
Aug 31, 2017
TozziniFreire, Faegre Baker Daniels, Lilla, Huck, Otranto, Camargo and Souza, Cescon, Barrieu & Flesch advised on the deal
Hormel Foods Corporation (NYSE: HRL) today announced it has acquired Cidade do Sol, a growing, branded, value-added meats company in Brazil. The company offers more than 70 products in 15 categories including authentic meats such as mortadella, sausage and salami for Brazilian retail and foodservice markets under the popular Ceratti® brand. The purchase price was approximately US$104 million, subject to customary working capital adjustments. Hormel Foods Corporation, based in Austin, Minn., is a global branded food company with over $9 billion in annual revenues across 75 countries worldwide. Its brands include SKIPPY®, SPAM®, Hormel® Natural Choice®, Applegate®, Justin’s®, Wholly Guacamole®, Hormel® Black Label® and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of “The 100 Best Corporate Citizens” by Corporate Responsibility Magazine for the ninth year in a row, and has received numerous other awards and accolades for its corporate responsibility and community service efforts. Present in homes of Brazilians for more than 80 years, the Ceratti® brand is one of the most traditional brands of cold cuts in the country, standing out for the unparalleled quality and incomparable flavor of its products. The company has more than 70 premium products, with various flavors which follow strict criteria for ingredient selection and production processes. Cidade do Sol complies with all the regulations required in Brazil, in addition to having a series of inspection procedures that ensure the quality of the products. TozziniFreire advised Hormel Foods International Corporation with Marcela W. Ejnisman (Picture), Jerry Levers de Abreu, Carla do Couto Hellu Battilana and Silvia Martins de Castro Cunha Zono. Faegre Baker Daniels LLP advised Hormel Foods International Corporation with George D. Martin and Mattew Kuhn. Lilla, Huck, Otranto, Camargo Advogados advised Grupo Ceratti with Fabio de Campos Lilla, Luís Gustavo Haddad, Daniela María Rosa Nascimento, Ana Carolina Barbuio Affonso and Diego Billi Falcão. Souza, Cescon, Barrieu & Flesch advised Grupo Ceratti with Maria Cristina Cescon, Flavia Anagnostopoulos, Vitor Stern and Mariana Barreiro.