Hormel Acquires Mark-Lynn to Expand Foodservice Presence

Hormel Foods Corp. announced March 30 it had purchased privately held Mark-Lynn Foods Inc. of Bremen, Ga., for approximately $42.5 million. The company anticipates sales of about $50 million, and expects the deal to be $.01 accretive to the 2005 earnings per share. Mark-Lynn Foods is an established manufacturer and distributor of a wide array of foodservice items. The company manufactures food products including salt and pepper packets, ketchup, mustard, sauces and salad dressings, creamers, sugar packets as well as jellies, desserts, and drink mixes."With half of today's U.S. consumer food dollars being spent outside of the home, our acquisition of Mark-Lynn Foods further strengthens the foodservice-focused capabilities within the Specialty Foods Business Segment. It will be managed by our Diamond Crystal Brands unit," said Joel W. Johnson, chairman of the board and chief executive officer, Hormel Foods. "Mark-Lynn Foods has a well-established capacity to produce multiple lines of dry and wet products, which is an excellent fit with our existing Specialty Foods manufacturing operations," he added.Mark-Lynn Foods was established in 1983 and is owned by Edward Dickinson, founder and president. The company currently operates more than 35 production lines within its 156,000-square-foot manufacturing facility on 38 acres in Bremen.