CHICAGO (Reuters) - Hormel Foods Corp. (HRL.N: Quote, Profile, Research, Stock Buzz) sees acquisitions as the primary use for its available cash, well ahead of paying a large one-time dividend like the one announced by Dean Foods Co. (DF.N: Quote, Profile, Research, Stock Buzz) last week, Hormel's chairman and chief executive said on Tuesday.
"We have had an ability to find some decent additive deals over the last several years and that's our top priority for cash usage," Jeff Ettinger, chairman and CEO, said at the Reuters Food Summit in Chicago.
On Friday, Dean said it would pay $15 a share, or about $2 billion, to shareholders in a special dividend, sparking some analysts to suggest that other food companies might do the same.
But Ettinger said Tuesday that after acquisitions, Hormel's next priority for cash would be a traditional share repurchase, while a one-time dividend is not a priority.
"Right now, a one-time dividend is something that would be quite a ways down the list," Ettinger said.
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