Hormel Foods is going nuts. The Austin, Minnesota-based company, known for its meat brands like Spam and Applegate, said Thursday it is buying the Planters nut business from Kraft Heinz Co. for $3.35 billion. Included in the deal are Planters brands like Nut-rition, Cheez Balls and Corn Nuts. “The acquisition of the Planters business adds […]
Hormel Foods, guided by Faegre Drinker, will pay $3.35 billion for the Planters snack nut business of Gibson Dunn-advised Kraft Heinz, the companies said Thursday, in a deal that adds to the buyer's portfolio a unit that posted 2020 net sales of about $1 billion.
Kraft Heinz has ended 2020 on a high note reporting a 6.2% increase in organic net sales and a 27% lift in household penetration in Q4, driven by significant gains in Ketchup, Lunchables, and Ore-Ida.
At the beginning of 2020, Kraft Heinz embarked on its multi-year transformation supported by a new operating model and platform-based prioritization of its portfolio, which has been divided into four segments: fast fresh meals; taste elevation; easy meals made better; and easy indulgent desserts. Our retail market share has continuously improved over the course of the year. What is most encouraging is that these trends are broad-based, with more than 70% of our categories experiencing positive trend bends in Q4 led by Heinz Ketchup and Lunchables, each picking up more than 2 points of share in the quarter, said Carlos Abrams-Rivers, Kraft Heinz US zone president, during a Q4 2020 management discussion call.