The Kraft Heinz Company recently announced that it has sold its nuts business to Hormel Foods Corporation for $3.35 billion.
The sale includes most products sold under the Planters brand as well as the Corn Nuts, Cheez Curls, Cheez Balls, and Nut-rition brands; and the global intellectual property rights to the Planters and Corn Nuts brands.
“This is another momentous step in our rapid transformation of Kraft Heinz,” Kraft Heinz CEO Miguel Patricio said. “It will enable us to sharpen our focus on areas with greater growth prospects and competitive advantage for our powerhouse brands. Within our Real Food Snacking platform, this means more aggressively driving real fuel for kids through Lunchables and real meal alternatives like P3.”
Kraft Heinz, under the terms of the agreement, will sell its Planters production facilities in Fort Smith, Ark., and Suffolk, Va., and its Corn Nuts production facility in Fresno, Calif. The Kraft Heinz Company is co-headquartered in Chicago, Ill., and Pittsburgh, Pa.
“This is a great example of using agile portfolio management to improve our growth trajectory,” Kraft Heinz CFO Paulo Basilio said. “As we move forward, we plan to continue deleveraging as we explore accretive investments to accelerate our strategy.”
In fiscal year 2020, the nuts business contributed approximately $1.1 billion to Kraft Heinz’s net sales.
The sale is expected to close during the first half of the year.