Hormel to close Valley Fresh facility
April 21, 2010
by Eric Schroeder
AUSTIN, MINN. — Hormel Foods Corp. plans to close its Turlock, Calif., Valley Fresh canned meats plant by Oct. 29. The company said it will incur a one-time charge of 5c per share related to the closing in the second quarter of fiscal 2010.
Hormel acquired the 90,000-square-foot facility in March 2006 as part of its $78 million purchase of Valley Fresh, Inc., a processor of canned, ready-to-eat chicken.
“This decision was a difficult one to make because of its impact on our valued employees at this location,” said Mike Devine, vice-president of grocery products operations. “The manufacture of our Valley Fresh canned products will be moved to another facility that will provide greater purchasing and distribution efficiencies.”
Hormel also said it will incur another one-time charge of approximately 5c per share related to the recently enacted Patient Protection and Affordable Care Act. The company said the charge primarily is due to a reduction in the value of the company’s deferred tax asset as a result of a change to the tax treatment of Medicare Part D reimbursements.