Hormel Foods has entered into a definitive agreement to acquire the Planters snack nut portfolio from the Kraft Heinz Company in a cash transaction for $3.35 billion. The proposed transaction is expected to close in the first half of 2021, subject to regulatory review and approval.
According to a press release, the transaction includes most products sold under the Planters brand, including single variety and mixed nuts, trail mix, NUT-rition products, Cheez Balls, and Cheez Curls, as well as Corn Nuts branded products. The transaction also includes global intellectual property rights to the Planters brand, subject to existing third-party licenses in certain international jurisdictions, and the Corn Nuts brand.
“The acquisition of the Planters business adds another $1 billion brand to our portfolio and significantly expands our presence in the growing snacking space,” said Jim Snee, chairman of the board, president and chief executive officer of Hormel Foods.
“Our competencies in brand stewardship, revenue growth management, e-commerce, innovation, and consumer insights will be key to driving growth for the Planters® brand and our customers,” Snee added. “We also expect significant synergies as we integrate this business into our One Supply Chain and Project Orion system.”
Under the terms of the agreement, Kraft Heinz will sell its Corn Nuts production facility in Fresno, Calif., and Planters production facilities in Fort Smith, Ark., and Suffolk, Va. These facilities and their employees will continue to operate in the ordinary course.
“This is another momentous step in our rapid transformation of Kraft Heinz,” said Kraft Heinz CEO Miguel Patricio. “It will enable us to sharpen our focus on areas with greater growth prospects and competitive advantage for our powerhouse brands. Within our Real Food Snacking platform, this means more aggressively driving real fuel for kids through Lunchables and real meal alternatives like P3.”
Hormel Foods Corporation, based in Austin, Minn., is a global branded food company with over $9 billion in annual revenue across more than 80 countries worldwide.