Hormel Foods Announces Definitive Agreement to Sell its Whole-Bird Turkey Business to Life-Science Innovations

Rhea-AI Summary

Hormel Foods (NYSE: HRL) agreed to sell its whole-bird turkey business to Life-Science Innovations (LSI), with closing expected by the end of Hormel Foods' fiscal 2026 second quarter, subject to customary conditions.

The sale transfers the Melrose whole-bird plant, Swanville feed mill and related transportation assets; JENNIE-O branded products and brand ownership are not affected. Hormel Foods expects minimal impact to adjusted fiscal 2026 results and noted LSI will co-manufacture to ensure uninterrupted order fulfillment through the end of fiscal 2026.

Positive

• Strategic refocus toward value-added protein offerings
• Transfer of whole-bird assets: Melrose plant, Swanville feed mill
• Co-manufacturing through end of fiscal 2026 to ensure order continuity

Negative

• Financial terms undisclosed, limiting investor visibility
• Whole-bird business divested, reducing exposure to commodity-driven operations

News Market Reaction – HRL

-1.43%

1 alert

-1.43% News Effect

On the day this news was published, HRL declined 1.43%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Expected closing timing: End of Q2 fiscal 2026 Earnings call date: Feb 26, 2026 Earnings call time CT: 7:00 a.m. CT +1 more

4 metrics

Expected closing timing End of Q2 fiscal 2026 Anticipated closing of whole-bird turkey business sale, subject to conditions

Earnings call date Feb 26, 2026 Fiscal 2026 Q1 earnings call to discuss minimal financial impact

Earnings call time CT 7:00 a.m. CT Scheduled start of Q1 2026 earnings call

Earnings call time ET 8:00 a.m. ET Corresponding Eastern Time for Q1 2026 call

Market Reality Check

Price: $24.99 Vol: Volume 5,295,871 is 1.16x...

normal vol

$24.99 Last Close

Volume Volume 5,295,871 is 1.16x the 20-day average of 4,575,535, indicating elevated trading interest before this announcement. normal

Technical Shares at $23.44 are trading below the 200-day MA of $26.24 and 26.91% under the 52-week high of $32.07.

Peers on Argus

HRL was down 1.43% while key packaged food peers mostly traded lower as well: MK...

HRL was down 1.43% while key packaged food peers mostly traded lower as well: MKC (-3.24%), SJM (-3.83%), GIS (-3.33%), and K (-0.02%), with PPC flat. No peers appeared in the momentum scanner, suggesting this move was not part of a high-intensity sector rotation.

Common Catalyst General Mills (GIS) also had strategy-focused news at the CAGNY conference, pointing to broader portfolio and strategy discussions across the packaged foods group.

Historical Context

5 past events · Latest: Feb 12 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 12	Leadership change	Positive	-2.1%	Appointed new group VP and chief supply chain officer from Hershey.
Feb 03	Marketing partnership	Positive	+0.7%	SPAM brand Big Game campaign with rookie receiver Tetairoa McMillan.
Feb 02	Earnings call notice	Neutral	+0.7%	Announced Q1 2026 earnings release and CAGNY conference presentation.
Feb 02	Product expansion	Positive	-0.6%	Expanded SKIPPY-inspired protein snacks across grocery and convenience.
Jan 29	Brand promotion	Neutral	-0.7%	PLANTERS NUTmobile hiring campaign for three full-time Peanutters.

Pattern Detected

Recent HRL news has often seen muted or negative reactions, with more divergence than alignment between ostensibly positive brand or personnel updates and short-term price moves.

Recent Company History

Over the last few weeks, Hormel Foods has focused on brand building, portfolio innovation, and leadership changes. Marketing and product news around SPAM®, Genius Gourmet® and PLANTERS® highlighted efforts to drive engagement and protein-forward snacking. Corporate updates included a new chief supply chain officer effective Mar 9, 2026 and upcoming Q1 earnings on Feb 26, 2026. Price reactions to these announcements have been mixed, with several positive-leaning updates followed by modest declines, suggesting investor caution toward near-term catalysts.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-12-05

Hormel Foods has an effective universal shelf registration on Form S-3ASR dated Dec 5, 2025 that allows it to issue senior unsecured debt securities from time to time. Terms such as maturity and interest rate would be set in future prospectus supplements, and net proceeds could be used for purposes including working capital, acquisitions, capital expenditures, debt repayment or refinancing, and stockholder returns.

Market Pulse Summary

This announcement highlighted Hormel Foods’ plan to sell its whole-bird turkey business to Life-Scie...

Analysis

This announcement highlighted Hormel Foods’ plan to sell its whole-bird turkey business to Life-Science Innovations while retaining the JENNIE-O® brand, reinforcing a shift toward value-added protein offerings. The company expects minimal impact on adjusted fiscal 2026 results, with more detail promised on the Feb 26, 2026 earnings call at 7:00 a.m. CT. Investors may watch how the transition services, brand focus, and future capital deployment under the existing debt shelf affect long-term profitability and stability.

AI-generated analysis. Not financial advice.

Transaction supports strategic shift toward more value-added protein offerings by Hormel Foods

JENNIE-O^® brand remains a strategic source of profitable growth for Hormel Foods

AUSTIN, Minn., and WILLMAR, Minn., Feb. 17, 2026 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today announced it has entered into a definitive agreement to sell its whole-bird turkey business to Life-Science Innovations (LSI). The transaction is expected to close by the end of the second quarter of fiscal 2026 for Hormel Foods, subject to customary closing conditions. 

"Our strategy for sustainable, profitable growth centers on expanding our value-added protein portfolio to meet evolving consumer needs, while reducing our exposure to more volatile, commodity-driven businesses," said Jeff Ettinger, interim chief executive officer, Hormel Foods. "We are confident that this portion of our legacy turkey business will be in good hands under LSI's ownership, given their deep experience and expertise in this area."

In the transaction, LSI will acquire assets from Hormel Foods, including the Melrose, Minnesota, whole-bird production facility; Swanville, Minnesota, feed mill; and associated transportation assets. LSI will also assume supply contracts with third-party turkey growers that are dedicated to the whole-bird business and provide co-manufacturing services to Hormel Foods through the end of its fiscal 2026, to provide uninterrupted fulfillment of customer orders during the transition. The broader array of JENNIE-O^® branded products, and ownership of the JENNIE-O^® brand name, are not impacted by the transaction.

"This transaction is an important next step in our evolution," said John Ghingo, president, Hormel Foods. "With a more focused turkey portfolio, we will continue strengthening the value-added aspects of our JENNIE-O^® business. We look forward to working with LSI to ensure a smooth transition for our team members, customers, consumers and suppliers."

"This agreement is a continuation of a 75-year relationship with Jennie-O," said Richard Huisinga, chief executive officer, LSI. "We are excited to combine the country's newest, state-of-the-art hen plant, the Minnesota hen-grower families and our recent first-of-its-kind turkey hatchery."

Financial details of the transaction have not been disclosed. Hormel Foods expects the sale to have a minimal impact on its adjusted fiscal 2026 financial results, which will be discussed in more detail during the company's first quarter earnings call on Feb. 26, 2026, at 7 a.m. CT (8 a.m. ET).

About Hormel Foods — Inspired People. Inspired Food.^™
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with

over $12 billion in annual revenue. Its brands include PLANTERS^®, SKIPPY^®, SPAM^®, HORMEL^® NATURAL CHOICE^®, APPLEGATE^®, WHOLLY^®, HORMEL^® BLACK LABEL^®, COLUMBUS^®, JENNIE-O^® and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report, one of America's most responsible companies by Newsweek, recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. The company lives by its purpose statement — Inspired People. Inspired Food.^™ — to bring some of the world's most trusted and iconic brands to tables across the globe. For more information, visit hormelfoods.com.

About Life-Science Innovations
Life-Science Innovations (LSI), based in Willmar, Minnesota, is a diversified organization supporting a family of companies that advance the agriculture and poultry industries. Backed by more than 80 years of experience in the turkey industry, from hatching through processing, and strengthened by longstanding partnerships including Turkey Valley Farms in Marshall, Minnesota, LSI brings a proven legacy of expertise to the agriculture and poultry sectors.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements, which are based on the current assumptions and expectations of Hormel Foods Corporation ("Hormel"). These statements are typically accompanied by the words "expect," "will," "would," or similar words or expressions. The principal forward-looking statements in this news release include statements regarding Hormel's anticipated sale of its whole-bird turkey business and the expected impact of the transaction on Hormel's fiscal 2026 financial results.

All such forward-looking statements are intended to enjoy the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended. Although Hormel believes there is a reasonable basis for the forward-looking statements, its actual results could be materially different. The most important factors which could cause Hormel's actual results to differ from its forward-looking statements include, but are not limited to, risks related to the deterioration of economic conditions; risks related to acquisitions, joint ventures, equity investments, and divestitures; risks and uncertainties associated with intangible assets, including any future goodwill or intangible assets impairment charges; the risk of disruption of operations; the risk that Hormel may fail to realize anticipated cost savings or operating profit improvements associated with strategic initiatives, including the Transform and Modernize initiative and Hormel's recent corporate restructuring plan; risk of unfavorable changes in Hormel's relationships with third parties; risk of Hormel's inability to protect information technology (IT) systems against, or effectively respond to, cyber-attacks, security breaches or other IT interruptions; labor relations and labor availability risks; food safety risks; fluctuations in commodity prices and availability of raw materials and other inputs; fluctuations in market demand for Hormel's products; risks related to Hormel's ability to respond to changing consumer preferences; damage to Hormel's reputation or brand image; risks of litigation; risks associated with government regulation; risks related to trade policies, export and import controls, and tariffs; and the other risks and uncertainties described in Item 1A – Risk Factors of Hormel's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which can be accessed at www.hormelfoods.com in the "Investors" section. Though Hormel has attempted to list comprehensively these important cautionary risk factors, Hormel cautions that other factors may in the future prove to be important in affecting Hormel's business or results of operations. Forward-looking statements speak only as of the date they are made, and Hormel does not undertake any obligation to update any forward-looking statement except as otherwise required by law.

Investor Contact
ir@hormel.com

Media Contact
media@hormel.com 

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SOURCE Hormel Foods Corporation

FAQ

What did Hormel Foods (HRL) announce on February 17, 2026 about its whole-bird turkey business?

Hormel Foods announced a definitive agreement to sell its whole-bird turkey business to LSI, expected to close by end of fiscal 2026 Q2. According to the company, the deal transfers the Melrose plant, Swanville feed mill and transportation assets while preserving JENNIE-O brand ownership.

How will the HRL sale affect JENNIE-O branded products and the brand name?

JENNIE-O branded products and ownership of the JENNIE-O brand name are not impacted by the sale. According to the company, the transaction only covers the whole-bird business and associated assets, leaving the broader JENNIE-O product portfolio intact.

When will the Hormel Foods (HRL) transaction with LSI close and what are the transition plans?

The transaction is expected to close by the end of Hormel Foods' fiscal 2026 second quarter, subject to customary conditions. According to the company, LSI will provide co-manufacturing services through the end of fiscal 2026 to maintain uninterrupted customer order fulfillment during transition.

What assets is LSI acquiring from Hormel Foods (HRL) in the whole-bird turkey sale?

LSI will acquire the Melrose, Minnesota whole-bird production facility, the Swanville feed mill and associated transportation assets. According to the company, LSI also assumes supply contracts with third-party turkey growers dedicated to the whole-bird business.

Will the Hormel Foods (HRL) sale materially affect fiscal 2026 results for shareholders?

Hormel Foods expects the sale to have a minimal impact on its adjusted fiscal 2026 financial results. According to the company, details will be discussed on the first quarter earnings call on Feb. 26, 2026 at 7 a.m. CT (8 a.m. ET).