"Our strategy for sustainable, profitable growth centers on expanding our value-added protein portfolio to meet evolving consumer needs, while reducing our exposure to more volatile, commodity-driven businesses," says Jeff Ettinger, interim chief executive officer, Hormel Foods. "We are confident that this portion of our legacy turkey business will be in good hands under LSI's ownership, given their deep experience and expertise in this area."

In the transaction, LSI will acquire assets from Hormel Foods, including the Melrose, Minnesota, whole-bird production facility; Swanville, Minnesota feed mill; and associated transportation assets. LSI will also assume supply contracts with third-party turkey growers that are dedicated to the whole-bird business and provide co-manufacturing services to Hormel Foods through the end of its fiscal 2026, to provide uninterrupted fulfillment of customer orders during the transition. 

The broader array of JENNIE-O branded products, and ownership of the JENNIE-O brand name, are not impacted by the transaction.

"This transaction is an important next step in our evolution," says John Ghingo, president, Hormel Foods. "With a more focused turkey portfolio, we will continue strengthening the value-added aspects of our JENNIE-O business. We look forward to working with LSI to ensure a smooth transition for our team members, customers, consumers and suppliers."

"This agreement is a continuation of a 75-year relationship with Jennie-O," adds LSI CEO Richard Huisinga. "We are excited to combine the country's newest, state-of-the-art hen plant, the Minnesota hen-grower families and our recent first-of-its-kind turkey hatchery.”