Hormel Welcomes Mr. Peanut
Mr. Peanut, the iconic character representing the Planters brand, is now a member of Hormel Foods Corp., known for another iconic brand called Spam.
Hormel, which has grown its portfolio extensively over the years to include many more brands than Spam, has agreed to acquire the Planters snack nut portfolio from the Kraft Heinz Co. for $3.35 billion in cash. But with a tax benefit valued at about $560 million, Hormel said the purchase price comes to about $2.79 billion. The transaction is expected to close in the spring.
The acquisition includes the Planters, NUT-rition, Planters Cheez Balls and Corn Nuts brands. It also includes three dedicated production facilities located in California, Arkansas and Virginia.
“Planters is an iconic leading snack brand with universal consumer awareness,” said Jim Snee, chairman of the board, president and CEO of Hormel Foods. “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.”
Snee added that Hormel’s competencies in brand stewardship, revenue growth management, e-commerce, innovation and consumer insights will be key to driving growth for the Planters brand.
The Planters snack nut portfolio net sales were about $1 billion in 2020.