plans to acquire the nutritional products business of
Diamond Crystal Brands
, a unit of
, for $65 million in cash.
The deal requires the approval of the bankruptcy court in Delaware, where Imperial Sugar filed for Chapter 11 relief in January. Hormel expects to close the transaction during the second calendar quarter of 2001.
Hormel is acquiring a category line that includes frozen, dry and ready-to-serve products, which are a primarily sold to hospitals and nursing homes.
Hormel, which is based in Austin, Minn., lost 49 cents, or 2.3%, to $21.01 in recent trading on the
New York Stock Exchange