Vending

Hormel Foods to acquire Planters from Kraft Heinz for $2.79B

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February 11, 2021

Hormel Foods Corp. has agreed to acquire the Planters snack nut portfolio from the Kraft Heinz Co. for $2.79 billion, according to a press release.

The transaction, expected to close in calendar Q2 2021 and subject to regulatory review, includes the Planters, NUT-rition, Planters Cheez Balls and Corn Nuts brands.

The transaction will include $3.35 billion in cash that provides a tax benefit valued at approximately $560 million, equating to an effective purchase price of $2.79 billion.

"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," Jim Snee, chairman of the board, president and CEO of Hormel Foods, said in the release. "We also expect significant synergies as we integrate this business into our One Supply Chain and Project Orion system."

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. Hormel Foods expects to attain synergies of approximately $50-60 million to be realized by 2024.

The acquisition includes three dedicated production facilities located in California, Arkansas and Virginia.