Hormel Foods Corp. said it has entered into a definitive agreement to acquire the Planters snack nut portfolio from the Kraft Heinz Co. The proposed transaction is expected to close in calendar Q2 2021, subject to regulatory review and approval.
The acquisition includes the Planters, NUT-rition, Planters Cheez Balls and Corn Nuts brands. Hormel will acquire the business for $3.35 billion in cash in a transaction that provides a tax benefit valued at approximately $560 million, equating to an effective purchase price of $2.79 billion.
“Planters is an iconic leading snack brand with universal consumer awareness,” said Hormel president and chief executive Jim Snee. “The acquisition of the Planters business adds another $1 billion brand to our portfolio and significantly expands our presence in the growing snacking space. The Planters brand enhances our portfolio built for individual and social snacking occasions, and perfectly complements our snacking brands such as Hormel Gatherings, Columbus, Justin’s, SKIPPY, Herdez and Wholly. This acquisition also meaningfully broadens our scope for future acquisitions in the snacking space.”
The Planters snack nut portfolio net sales were approximately $1 billion in calendar year 2020 and are expected to grow at the company’s long-term organic growth target.
