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.