MegaMex deal finalized Monday

Published 9:53 am Wednesday, October 28, 2009

Hormel Foods Corp. and Herdez Del Fuerte, S.A. de C.V., closed a deal on Monday to form MegaMex Foods, a company to market Mexican foods in the U.S.

“The close of this exciting transaction marks the beginning of new leadership in the Mexican foods category in the United States with MegaMex Foods,” said Luis G. Marconi, managing director at MegaMex Foods. “We look forward to growing the Mexican foods category by serving as a one-stop-shop for our retail and foodservice partners, with brands and products that appeal to consumers across geographies and demographics.”

The 50/50 venture between Hormel and Herdez Del Fuerte expands the existing agreement between the two companies and produces a portfolio with initial revenue of about $200 million. This portfolio will include brands like Chi-Chi’s, Herdez, La Victoria and Embasa.

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“This new venture takes our relationship with Hormel Foods to the next level, and it is a win-win all around,” said Enrique Hernndez-Pons Torres, chairman of the board, MegaMex Foods. “By forming MegaMex Foods, we are able to better serve our retail partners and consumers while positioning our businesses for long-term growth.”

MegaMex Foods will be based in Chino, Calif. with an independent management team, but the venture will utilize the expertise of Hormel and Herdez Del Fuerte through things like research, manufaturing and development.

Herdez Del Fuerte is a Miexico City based manufacturer of mostly tomato, fruit, vegetable, jalapeño, mole sauce, coffee and tuna products in the U.S. and Mexico.