Hormel Foods Divests Health Labs Business to Lyons Magnus for Strategic Integration

Hormel Foods has sold its Health Labs division to Lyons Magnus, a subsidiary of Paine Schwartz Partners. The deal marks the creation of Lyons Health Labs, which will focus on nutritional products for specific health conditions. The acquisition expands Lyons Magnus's health and nutrition offerings, aiming to meet the needs of foodservice operators and develop innovative products. Hormel Foods previously lowered its annual net sales forecast due to commodity price drops and production issues.

The food industry landscape continues to evolve, with recent developments highlighting the growing importance of health and nutrition. In a move aimed at bolstering its offerings in this area, Lyons Magnus, a subsidiary of Paine Schwartz Partners, has acquired Hormel Foods' Health Labs division [1]. The acquisition, which closed on October 23, 2024, marks the creation of Lyons Health Labs, a business unit that will focus on nutritional products tailored to specific health conditions.

Hormel Health Labs, previously a division of Hormel Foods Corporation, had built a strong reputation in the health care and special care facility sectors, offering a range of products designed for dysphagia (difficulty swallowing), unintended weight loss, digestive health, and hydration [1]. The acquisition adds an impressive product lineup to Lyons Magnus's portfolio, which includes ReadyCare, Thick & Easy, MightyShakes, and Magic Cup [1]. These products cater to various needs and are sold to healthcare providers, special care facilities, and other institutions.

Lyons Magnus, known for its diverse product offerings in global foodservice and food ingredient channels, plans to leverage this acquisition to become a leader in the health and nutrition sector [1]. According to Jim Davis, CEO of Lyons Magnus, "The combination of both companies' broad portfolio of products, resources, capacity, and people immediately establishes Lyons Health Labs as a health and nutrition leader, poised to meet the needs of today's foodservice operators and also be a major player in tomorrow's innovations" [1].

This acquisition is not Lyons Magnus's first foray into the health and nutrition sector. In 2019, the company acquired TRU Aseptics, an aseptic products manufacturer [2]. Although Schreiber Foods purchased TRU Aseptics from Lyons Magnus in August 2021, the acquisition of Hormel Health Labs significantly expands Lyons Magnus's presence in the health and nutrition market.

Lyons Magnus's acquisition of Hormel Health Labs reflects the growing demand for healthier, more tailored food options. As the population ages and consumers become increasingly health-conscious, companies like Lyons Magnus are well-positioned to capitalize on this trend and provide innovative solutions to meet their customers' needs.

References:
[1] Gabriel Dillard. Lyons-Magnus in Fresno acquires division of Hormel Foods Corp. The Business Journal. October 23, 2024. https://www.bizjournals.com/sacramento/news/2024/10/23/lyons-magnus-hormel-foods-corp-acquisition.html.
[2] Rachel Krauss. Lyons Magnus acquires TRU Aseptics, adds to its food ingredient offerings. The Business Times. August 20, 2020. https://www.bizjournals.com/sanfrancisco/news/2020/08/20/lyons-magnus-acquires-tru-aseptics.html.