Hormel Beefs Up Mexican Food Offerings

CHINO, Calif.MegaMex Foods LLC, a joint venture between Hormel Foods Corporation and Herdez Del Fuerte, S.A. de C.V., today announced it has entered into a definitive agreement to acquire 100 percent of the stock of Don Miguel Foods Corp. from TSG4 L.P., a private equity fund sponsored by TSG Consumer Partners LLC, and private investors. The transaction is expected to close in October 2010. Terms were not disclosed.

Don Miguel Foods is a provider of branded frozen and fresh authentic Mexican flavored appetizers, snacks and handheld items. The portfolio includes mini tacos, flautas, taquitos, empanadas, burritos and roller grill items.

Growth through the strategic acquisition of Don Miguel Foods is an important step toward making us stronger for the future," said Enrique Hernández-Pons Torres, chairman of the board of MegaMex Foods. Adding these leading product categories to our portfolio brings us closer to achieving our goal of being a one-stop-shop for Mexican foods for our customers."

Don Miguel Foods will add new competencies that will allow us to continue expanding our presence in the nations leading convenience stores, club stores and supermarkets," said
Luis G. Marconi, managing director at MegaMex Foods.