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FOR IMMEDIATE RELEASE Contact : Media Relations 507-434-6352 media@hormel.com Hormel Foods Hormel Foods Adds Another Strategic Leading Brand to its Portfolio with the Acquisition of Planters® Acquisition of the Iconic Planters® Brand is a Continuation of the Company's Evolution as a Global Branded Food Company AUSTIN , Minn . , ( Feb. 11 , 2021 ) Hormel Foods Corporation ( NYSE : HRL ) , a global branded food company , announced today that it has entered into a definitive agreement to acquire the PlantersⓇ snack nut portfolio from the Kraft Heinz Company ( Nasdaq : KHC ) . The proposed transaction is expected to close in calendar Q2 2021 , subject to regulatory review and approval . The acquisition includes the Planters , NUT - rition® , Planters® Cheez Balls and Corn Nuts® brands . Hormel Foods will acquire the business for $ 3.35 billion in cash in a transaction that provides a tax benefit valued at approximately $ 560 million , equating to an effective purchase price of $ 2.79 billion . " Planters® is an iconic leading snack brand with universal consumer awareness , " said Jim Snee , chairman of the board , president and chief executive officer 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 . " " Our competencies in brand stewardship , revenue growth management , e - commerce , innovation and consumer insights will be key to driving growth for the Planters® brand and for our customers , " Snee said . " We also expect significant synergies as we integrate this business into our One Supply Chain and Project Orion system . " The PlantersⓇ snack nut portfolio net sales were approximately $ 1 billion in calendar year 2020 and are expected to grow at the company's long - term organic growth target . Operating margins are expected to be accretive to the Grocery Products business in 2022 and enhance margins and cash flows for the total company . Hormel Foods expects to attain synergies of approximately $ 50-60 million to be realized by 2024. The acquisition includes three dedicated production facilities located in California , Arkansas and Virginia . " The acquisition of the Planters® branded business further demonstrates our disciplined financial approach to M & A , " said Jim Sheehan , executive vice president and chief financial officer of Hormel Foods . " We expect this acquisition will responsibly leverage our balance sheet and will not compromise our disciplined capital allocation policy , especially our commitment to dividend growth . " Citi and Credit Suisse are acting as financial advisors to Hormel Foods and Faegre Drinker Biddle & Reath is serving as legal counsel .