SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 17, 1997
HORMEL FOODS CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation)
1-2402 41-0319970
(Commission File Number) (IRS Employer Identification Number)
1 Hormel Place, Austin, Minnesota 55912
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (507) 437-5737
`
Pages: This report contains three (3) pages numbered sequentially from
this cover page.
Item 5. OTHER MATERIALLY IMPORTANT EVENTS
December 17, 1997
The Company announced the sale of its Davenport, Iowa gelatin/specialized
proteins plant to Goodman Fielder Limited of Sydney, Australia for
$71,400,000. The sale is scheduled to close in January 1998. The full
text of the announcement follows:
FOR RELEASE UPON RECEIPT:
HORMEL FOODS CORPORATION
"AUSTIN, MINN. (December 17, 1997) -- Hormel Foods Corporation today
announced the sale of its 147,000 square foot Davenport (Iowa)
gelatin/specialized proteins plant to Goodman Fielder Limited of Sydney,
Australia. The $71.4 million (U.S. dollars) agreement is expected to be
finalized in January.
The Davenport plant, opened in 1979, manufactures bulk gelatin sold
worldwide to confectionery, bakery, dairy and pharmaceutical companies. It
also produces specialty proteins used in skin and hair care products by the
cosmetic and personal care industry. The 125 production and administrative
employees in Davenport are included in the sale agreement to Goodman
Fielder who intend to operate the business as part of their Leiner Davis
Group subsidiary.
"In total, our Specialty Products Division has consistently been a
good one for the company," said Joel W. Johnson, chairman of the board,
president and chief executive officer. "However, strategically the bulk
gelatin and specialty protein business doesn't fit our future growth plans
which are to concentrate on the company's new and established consumer-
branded meat and food products."
Johnson added that the sale of the Davenport plant represents a
portion of business conducted by the Specialty Products Division. "We will
continue to grow our long established private label business which includes
sugar-based and sugar-free gelatin desserts, instant and cooked puddings
and drink mixes." The Specialty Products Division will also continue to
market its premium line of all-natural meat stocks and broths under the
Great Beginnings and Building Blocks brands.
David Hearn, managing director and chief executive officer of Goodman
Fielder Limited, noted the acquisition enables his company to expand its
global ingredients division. "This acquisition is an important first step
in our long-term growth strategy of targeted expansion in the global
ingredients market designed to generate sustainably higher returns for
shareholders," he said.
Goodman Fielder is a $2.5 billion (U.S. dollars) company with 15,000
employees in more than 15 countries. Its lines of business include milling
and baking, cereals and snacks, edible oils and foodservice, poultry and
ingredients. Hormel Foods Corporation, headquartered in Austin, Minn., is a
multinational manufacturer and marketer of consumer-branded processed meat
and food products which are sold to retail grocers and foodservice and
industrial customers."
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
HORMEL FOODS CORPORATION
(Registrant)
By
D. J. HODAPP
Executive Vice President
and Chief Financial Officer
By
M. J. McCOY
Vice President and Treasurer
Dated: December 17, 1997
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