said it agreed to buy Provena Foods, a provider of pepperoni to pizza makers and packaged food manufacturers, in a deal valued at about $10.6 million.
The transaction is expected to close by the end of this calendar year.
Under the terms of the deal, each share of Provena's common stock would be converted into the right to receive 0.08 shares of Hormel stock. Provena, which expects to close the deal by the end of the year, said that including net assumed debt of $6.2 million and a price of Hormel stock at $37.50 a share, the deal has an enterprise value of $16.8 million.
"We are very excited about the opportunity to join our company with such an established name in the food industry," Provena said. "The merger will give Hormel Foods a west-coast production capacity and represents significant value to the Provena shareholders."
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