Minnesota's Hormel Foods buys nuts brand Planters from Kraft Heinz in $3.35B deal

The Austin-based company adds another brand to its collection.
Author:
Publish date:
peanut-624601_1280

Famous nuts brand Planters will be owned by a Minnesota company after Hormel Foods struck a deal to buy it from Kraft Heinz.

Austin-based Hormel, which counts Jennie-O Turkey and SPAM among its most famous brands, is buying Planters with $3.35 billion in cash, which ultimately works out as costing the firm $2.79 billion when tax benefits are factored in.

Known for its salted, roasted, and flavored nuts products – as well as the monocled Mr. Peanut mascot – other Planters products falling under Hormel ownership include the Cheez Balls, NUT-rition, and Corn Nuts brands.

While primarily known as being a meat producer, with its Hormel-branded bacon and "Natural Choice" cold meats a familiar sight in grocery store coolers, the purchase of Planters represents the company's growing move into the snack sector.

"Planters is an iconic leading snack brand with universal consumer awareness," said Jim Snee, CEO of Hormel Foods, in a Thursday press release.

"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 brand generated around $1 billion sales in 2020, with the purchase including manufacturing facilities in California, Arkansas and Virginia.

The latest forecast from Novak Weather

Next Up

covid-19, coronavirus

South African COVID-19 variant detected in Wisconsin

There have been no cases of the South African strain found in Minnesota.

Brian Dutcher

Could Brian Dutcher be Gophers target to replace Richard Pitino?

Dutcher's contract has a buyout clause that could lead him to Minnesota.

state patrol

Driver, 82, killed in Kandiyohi County crash involving semi

The elderly woman is a resident of Belgrade, Minnesota.

N95 mask

'Rapidly growing' outbreak of U.K. COVID variant found in Carver County

The department says it's been linked back to youth sports, with cases also found at local gyms.

Mats Zuccarello

Wild dominate Coyotes with 3-goal first period

The Wild rebounded after getting swept in Vegas.

Guy Fieri

MN brewpub to make 2nd appearance on 'Diners, Drive-Ins and Dives'

In other words, Guy Fieri is returning to the Twin Cities.

Screen Shot 2020-06-15 at 7.11.05 AM

St. Cloud teen charged with raping girl in high school bathroom

Police say it happened during a late 2019 basketball game.

Mark_Pavelich

'Miracle on Ice' star Mark Pavelich found dead at treatment facility

The 63-year-old had been ordered to undergo psychiatric care.

Related

Screen Shot 2020-04-23 at 1.41.12 PM

Hormel Foods announces more bonuses for its plant workers

The Austin-based food giant already paid out bonuses in April.

Muscle Milk

Hormel sells company behind Muscle Milk to PepsiCo for $465M

The Minnesota company is ending its foray into the protein powder and drinks market.

Hormel is spending $850 million to buy Columbus Craft Meats

The Spam-maker is dropping $850 million to scoop up Columbus Craft Meats.

Screen Shot 2020-09-02 at 9.28.48 AM

Target announces expansion of its Good & Gather food range

The store's own brand has become its biggest seller in grocery.

The C9 Champion line will disappear from Target shelves

The clothing company announced it won't renew its Target partnership in 2020.

Screen Shot 2019-11-18 at 11.59.59 AM

The Herbivorous Butcher takes on food giant Nestle in trademark battle

The Minneapolis vegan food shop is fighting the global conglomerate in the courts.