RTTNews | Feb 11, 2021 07:31AM EST

07:30 Thursday, February 11, 2021 (RTTNews.com) - Kraft Heinz Co. (KHZ) announced Thursday that it has agreed to sell its Planters snack nut portfolio to Hormel Foods Corp. (HRL) in a cash transaction of $3.35 billion. The proposed transaction is expected to close in the first half of 2021, subject to regulatory review and approval.

The transaction includes most products sold under the Planters brand, including single variety and mixed nuts, trail mix, Nut-rition products, Cheez Balls, and Cheez Curls, as well as Corn Nuts branded products.

The transaction also includes global intellectual property rights to the Planters brand, subject to existing third-party licenses in certain international jurisdictions, and to the Corn Nuts brand. It also includes three dedicated Corn Nuts production facilities located in California, Arkansas and Virginia. These facilities and their employees will continue to operate in ordinary course.

The business being sold contributed approximately $1.1 billion to Kraft Heinz's net sales for fiscal year 2020, primarily in the U.S. segment.

For Hormel, the acquisition of the iconic Planters brand is a continuation of its evolution as a global branded food company. The transaction also provides Hormel a tax benefit valued at approximately $560 million, equating to an effective purchase price of $2.79 billion. It expects to attain synergies of approximately $50 million to 60 million, to be realized by 2024.

Read the original article on RTTNews ( https://www.rttnews.com/3169031/kraft-heinz-to-sell-planters-snack-nut-portfolio-to-hormel-foods-for-3-35-mln-cash-quick-facts.aspx)

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