Hormel Foods, the maker of Spam, has agreed to buy Brakebush Brothers, a family-owned chicken company, for about $1.055 billion, The Wall Street Journal and Bloomberg reported. Hormel announced the deal on Sept. 30.

Brakebush makes value-added chicken products, both outlets said. Bloomberg reported the deal at $1 billion.

Brakebush had about $1.2 billion in sales over the last 12 months, Hormel said, according to the Journal.

The deal is part of Hormel's plan to invest in growing types of protein, the Journal reported. Bloomberg said the purchase is expected to strengthen Hormel's food-service business, which sells to restaurants and other food operators.

Restaurants have been promoting chicken heavily to meet customer demand and to offset higher beef prices, Bloomberg reported. Bloomberg said the U.S. "protein craze" continues to drive demand for lean meat.

"We have seen a lot of sustained demand growth for chicken," both in food service and among shoppers, said John Ghingo, Hormel's incoming chief executive, according to Bloomberg.

Brakebush was founded in 1925 and is based in Westfield, Wisconsin, Hormel said in its announcement. It runs five production plants and two research labs.

Hormel will pay cash for the company, which it is buying from the Brakebush family, according to the announcement.

The deal is expected to close in the first quarter of Hormel's 2027 fiscal year, Hormel said. It still needs approval from regulators.

Hormel expects the purchase to add to its adjusted earnings per share starting in fiscal 2028, the company said. It plans to report Brakebush's results mainly in its food-service segment.

"Brakebush is a highly respected leader in value-added chicken and has earned the trust of customers for more than 100 years," said Jeff Ettinger, Hormel's interim chief executive, in the announcement.

What we know: Hormel is buying Brakebush for about $1.055 billion.
What we don't: Whether regulators will raise concerns before the deal closes.