Applegate has announced a $774 million agreement with Hormel Foods, Inc. to become an independently operated, stand-alone subsidiary.
“Over the last 28 years Applegate has brought transparency and clean ingredients to American favorites and classics like hot dogs, bacon and deli meat,” said Stephen McDonnell, Applegate Founder. “It was my mission from the start to change the way we thing about meat – how it’s raised and produced – and this agreement is definitely a continuation of that mission.”
According to a press release from the company, McDonnell will serve as an advisor, and Kerry Collins, the company’s current CEO, will continue her role for several months.
“Applegate’s consumers won’t see any changes,” said Collins. “Our products, standards, mission and focus will remain the same. We’re going to continue to make noise to change the food system for the better.”
The company will also maintain its headquarters in Bridgewater, New Jersey and will retain all of its employees.
“Applegate will continue to support labeling and transparency to genetically engineered foods, limiting the use of antibiotics in animal agriculture, and advocating for the advancement of humane standards,” said Gina Asoudegan, Applegate’s Senior Director of Mission.
Through this agreement, the company will operate as a separate, stand-alone subsidiary. This will allow Applegate to continue its mission-driven focus while utilizing Hormel Foods’ vast resources to make natural and organic meat accessible.
This agreement is expected to close within 60 days from signing, which happened on May 26, 2015.