Hormel Foods Inc. & Applegate
“As I looked to sell the company, the most important thing for me was finding a partner that would let Applegate keep being Applegate,” Founder Stephen McDonnell said in a statement, acknowledging that the company behind Spam may not seem to be the most likely partner for the maker of humanely raised and organic meats. “I believe that Hormel Foods is buying us because they believe we are doing something right.”
The $775 million deal will allow Applegate to scale up its business by giving it access to more resources and distribution channels, even while it remains a standalone subsidiary. McDonnell said the acquisition will not change Applegate's position on important issues like GMO labeling or antibiotics. “I don’t ask you to take me at my word. Just watch what we do,” he said.