AUSTIN, Minn. — The Hormel Foods Corp. has entered into an agreement to acquire Columbus Manufacturing, Inc., Hayward, California, for $850 million. Columbus is a manufacturer of salami, Italian specialty meats and deli meats.

James Snee, president and CEO of Hormel Foods

“Columbus is capitalizing on one of the fastest-growing areas in the retail grocery store with premium, authentic products that are on-trend with today’s consumers who are looking for unique experiences, flavors, and products,” said James P. Snee, president and CEO of Hormel Foods Corp. “The acquisition of Columbus will serve as a catalyst for uniting all our deli businesses into one customer-facing organization. This acquisition significantly enhances our scale in the deli by broadening our portfolio of products, customers, and consumers. The synergies we can unlock with this acquisition are clear and I’m excited for the next evolution of our company.”

Columbus Manufacturing generates approximately $300 million in annual sales and Hormel Foods is forecasting the business will have a growth rate greater than 5 percent. Hormel Foods management expects the acquisition to be “modestly” accretive to earnings per share in fiscal 2018, and full-year accretion in fiscal 2019 to be in the range of 6c to 8c per share.

Columbus will remain based in California and will be incorporated into Hormel’s Refrigerated Foods business unit. The acquisition is contingent on customary closing conditions and regulatory approvals.