Hormel's new deal south of the border
Here's a deal that Austin-based Hormel Foods kicked out a release about Monday evening. Unfortunately, a bad bug of some kind knocked me out of commission Tuesday, so this is the first time I have been conscious enough to post this.
Anyway, Hormel has struck a deal with Herdez Del Fuerte, a Mexico City-based food company, to form a joint venture to market food to U.S. customers. The resulting company is called MegaMex Foods, LLC and it is based in Chino, Calif.
I've posted on this deal before. The reason Hormel is touting this now is that the deal, which was first announced publically in June, has now officially closed.
Here's some from the release on this deal:
Hormel Foods and Herdez Del Fuerte announced the closing of a 50/50 joint venture agreement to create MegaMex Foods, LLC, which will market Mexican foods in the United States.
companies and produces a portfolio with initial revenue of about $200 million.
MegaMex Foods has a comprehensive portfolio that includes brands such as
CHI-CHI`S, HERDEZ, LA VICTORIA, EMBASA and DOÑA MARÍA, among others, which
resonate with Mexican-American and mainstream consumers of Mexican foods.
MegaMex Foods is a free-standing entity with an independent management team
based in Chino, Calif. MegaMex Foods will optimize efficiencies by leveraging
core competencies of the parent companies, such as manufacturing, research and
development and the supply chain.