Kraft Heinz sells nuts to Hormel foods
Cash transaction of $ 3.35 billion
TheKraft Heinz Company (Kraft Heinz) announced today that it has entered into a definitive agreement to sell its nut business to Hormel Foods Corporation via a $ 3.35 billion cash transaction. The transaction is expected to close in the first half of 2021 and is subject to regulatory review and approval. The transaction includes the majority of products sold under the Planters brand, including single and mixed nuts, trail mixes, Nut-rition products, Cheez Balls and Cheez Curls, as well as Corn Nuts brand products.
"This is another important step in the transformation of Kraft Heinz", said Miguel Patricio , CEO of the Group. "It will allow us to focus our attention more on areas with the most growth prospects and the most competitive for our brands". "This is a great example of using agile portfolio management to improve the company's growth trajectory", said Paulo Basilio , CFO of Kraft Heinz. “We plan to continue deleveraging; at the same time we are committed to incremental investments to accelerate and advance our strategy".
The divestiture of the business contributed approximately $ 1.1 billion to Kraft Heinz's net sales for fiscal 2020, primarily in the US segment. Under the terms of the agreement, Kraft Heinz will sell its hazelnut corn production facility in Fresno, California, and Planters' manufacturing facilities in Fort Smith, Ark. And Suffolk, Virginia. These facilities and their employees will continue to function normally. Perella Weinberg Partners served as exclusive financial advisor to Kraft Heinz for this transaction, while Gibson, Dunn & Crutcher Llp served as legal advisor.
EFA News - European Food Agency