Once again showing its taste for Mexican food, Austin-based Hormel Foods is now ready to serve up some guacamole after acquiring the top U.S. producer of the avocado dip.
MegaMex Foods, a joint venture of Hormel and Herdez Del Fuerte, announced this morning that it had wrapped up the purchase of Fort Worth, Texas-based Fresherized Foods.
The financial terms were not released. MegaMex first announced its intention to purchase this company last month.
"This transaction further demonstrates the clear commitment of the MegaMex Foods partners to become the U.S. leader in Mexican food," said Jeff Ettinger, chairman of the board, president and CEO at Hormel Foods.
Fresherized is described as being the top maker of guacamole in the U.S. under its Wholly Guacamole. It also makes Wholly Salsa and Wholly Queso products.
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It employs about 1,500 people. It has facilities in Mexico, Chile and Peru.
In 2010, it was processing 2 million pounds of avocados a week.
"We are pleased with the closing of this purchase "Guacamole continues to build in popularity among consumers, not only as a nutritious and flavor-enhancing dip, but also as a sandwich spread," said Luis Marconi, managing director at MegaMex Foods.
Hormel estimates annual sales from Fresherized will be about $140 million.
Fresherized officials said in 2010 that the company's annual sales had been increasing by 30 percent a year since 2004.
"This acquisition enhances the position of MegaMex Foods as a one-stop-shop for Mexican foods." said Enrique Hernández-Pons Torres, CEO of MegaMex Foods in this morning's announcement.
This purchase follows MegaMex's 2010 acquisition of Don Miguel Foods Corp., which makes Mexican flavored appetizers and snacks.
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