We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hormel Foods Acquires Justin's to Boost Product Portfolio
Read MoreHide Full Article
Leading meat products manufacturer Hormel Foods Corporation (HRL - Free Report) has finally clearance for acquiring Justin's LLC from VMG Partners. The buyout will not only be accretive to Hormel Foods’ inorganic growth profile but will also help the acquirer tap the market demand for health conscious consumers.
Justin's LLC is a popular nut-butter based snacks products’ company that offers four types of nut-butter snack lines. The company’s products include squeeze packs, spreads, snack packs and peanut butter cups. Before the acquisition, Justin's LLC operated in collaboration with VMG Partners.
VMG is a privatized equity company that invests in specialized branded consumer product companies in the lower middle market. Notably, VMG has always allowed Justin's LLC to conduct its corporate operations with complete autonomy. The partnership also provided adequate financial assistance to the company for its commercial growth programs.
Hormel Foods is steadily improving its profitability on the back of superior product and process innovation, solid sales of value-added products and greater operational efficiency. Furthermore, the company’s solid inorganic growth strategy helps to boost revenues and margins. The takeover of Justin's LLC would further strengthen the existing product portfolio of Hormel Foods. Justin LLC's nut-butter product line would be complement Hormel Foods’ products in catering to the demand of young health conscious consumers.
After the acquisition, Justin's LLC would continue operating as a subsidiary of Hormel Foods’ Grocery Products segment. Justin's LLC is set to benefit from Hormel Foods’ unique innovation, which is expected to highly enrich the quality of its products.
During the second-quarter fiscal 2016 earnings release, Hormel Foods raised its full-year fiscal 2016 adjusted earnings projection to the range of 1.56–$1.60 per share from the previous projection of $1.50–$1.56. We believe that the acquisition of Justin's LLC would help Hormel Foods reach its earnings target for the current fiscal year.
Other Stocks to Consider
Hormel Foods presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Tyson Foods, Inc. (TSN - Free Report) , AMC Networks Inc. (AMCX - Free Report) and Carter's, Inc. (CRI - Free Report) . All the three companies currently carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Hormel Foods Acquires Justin's to Boost Product Portfolio
Leading meat products manufacturer Hormel Foods Corporation (HRL - Free Report) has finally clearance for acquiring Justin's LLC from VMG Partners. The buyout will not only be accretive to Hormel Foods’ inorganic growth profile but will also help the acquirer tap the market demand for health conscious consumers.
Justin's LLC is a popular nut-butter based snacks products’ company that offers four types of nut-butter snack lines. The company’s products include squeeze packs, spreads, snack packs and peanut butter cups. Before the acquisition, Justin's LLC operated in collaboration with VMG Partners.
VMG is a privatized equity company that invests in specialized branded consumer product companies in the lower middle market. Notably, VMG has always allowed Justin's LLC to conduct its corporate operations with complete autonomy. The partnership also provided adequate financial assistance to the company for its commercial growth programs.
Hormel Foods is steadily improving its profitability on the back of superior product and process innovation, solid sales of value-added products and greater operational efficiency. Furthermore, the company’s solid inorganic growth strategy helps to boost revenues and margins. The takeover of Justin's LLC would further strengthen the existing product portfolio of Hormel Foods. Justin LLC's nut-butter product line would be complement Hormel Foods’ products in catering to the demand of young health conscious consumers.
After the acquisition, Justin's LLC would continue operating as a subsidiary of Hormel Foods’ Grocery Products segment. Justin's LLC is set to benefit from Hormel Foods’ unique innovation, which is expected to highly enrich the quality of its products.
During the second-quarter fiscal 2016 earnings release, Hormel Foods raised its full-year fiscal 2016 adjusted earnings projection to the range of 1.56–$1.60 per share from the previous projection of $1.50–$1.56. We believe that the acquisition of Justin's LLC would help Hormel Foods reach its earnings target for the current fiscal year.
Other Stocks to Consider
Hormel Foods presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Tyson Foods, Inc. (TSN - Free Report) , AMC Networks Inc. (AMCX - Free Report) and Carter's, Inc. (CRI - Free Report) . All the three companies currently carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>