The Kraft Heinz Company announced that it has entered into a definitive agreement to sell its nuts business to Hormel Foods Corporation 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.
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 to the Corn Nuts brand.
As part of the Kraft Heinz operating model, consumer-driven platforms and platform roles help to focus its efforts within each geographic segment. Kraft Heinz prioritizes growth areas and takes strategic actions where appropriate.
The business being sold contributed approximately $1.1 billion to Kraft Heinz’s net sales for fiscal year 2020, primarily in the US segment.
Under the terms of the agreement, Kraft Heinz will sell its Corn Nutsproduction 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 ordinary course.
Perella Weinberg Partners served as the exclusive financial advisor to Kraft Heinz for this transaction, while Gibson, Dunn & Crutcher LLP served as its legal advisor.