APPLEGATE acquired by HORMEL FOODS

Hormel Foods agreed on May 26, 2015 to acquire Applegate Farms, the natural and organic value-added prepared meats brand, from selling shareholders Stephen McDonnell and Swander Pace Capital, at an enterprise value of . Applegate's annual sales were expected to be . The deal was expected to close within 60 days, subject to regulatory approvals in the United States. Applegate was to operate autonomously as a standalone subsidiary within Hormel Foods' Refrigerated Foods segment, managed by its core team of 100 employees, based primarily in Bridgewater, New Jersey, plus a few Hormel Foods staff relocating there. Jeffrey M. Ettinger, chairman, president and chief executive officer of Hormel Foods, said the acquisition expands the breadth of the company's protein offerings as more consumers choose natural and organic products. Applegate founder and long-time CEO Stephen McDonnell said the agreement continues his mission to change how meat is raised and produced. Hormel Foods projected the deal would be neutral to earnings per share in fiscal 2015 and accretive by approximately 7 to 8 cents per share in fiscal 2016. Credit Suisse was exclusive financial advisor to Hormel Foods.