Kraft Heinz Completes Sale of Nuts Business

Rhea-AI Summary

The Kraft Heinz Company has finalized the sale of its nuts business to Hormel Foods for $3.35 billion. This divestiture, announced on February 11, 2021, includes the Planters brand and associated products, such as single variety and mixed nuts, trail mix, and Cheez Balls. CEO Miguel Patricio stated that this sale marks a significant milestone in Kraft Heinz's transformation strategy and enhances their growth profile. The transaction also covers global intellectual property rights related to the Planters and Corn Nuts brands.

Positive

• Sale of nuts business for $3.35 billion strengthens balance sheet.
• Divestiture allows focus on core brands and strategic growth.

Negative

• Potential risks in realizing expected benefits from the sale.
• Market uncertainty regarding the future performance post-divestiture.

The Kraft Heinz Company (“Kraft Heinz” or the “Company”) announced today that it has completed the sale of its nuts business to Hormel Foods Corporation in a cash transaction for $3.35 billion. The Company previously announced the signing of a definitive agreement on Feb. 11, 2021, under which Kraft Heinz would divest 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.

“The sale of our Nuts portfolio is another important milestone in our transformation,” said Kraft Heinz CEO Miguel Patricio. “The divestiture is a great example of our agile portfolio management and will help Kraft Heinz enhance our overall growth profile while enabling our strategic focus.”

ABOUT THE KRAFT HEINZ COMPANY

We are driving transformation at The Kraft Heinz Company (Nasdaq: KHC), inspired by our Purpose, Let's Make Life Delicious. Consumers are at the center of everything we do. With 2020 net sales of approximately $26 billion, we are committed to growing our iconic and emerging food and beverage brands on a global scale. We leverage our scale and agility to unleash the full power of Kraft Heinz across a portfolio of six consumer-driven product platforms. As global citizens, we're dedicated to making a sustainable, ethical impact while helping feed the world in healthy, responsible ways. Learn more about our journey by visiting www.kraftheinzcompany.com or following us on LinkedIn and Twitter.

Forward-Looking Statements

This press release contains a number of forward-looking statements. Words such as “plan,” “anticipate,” “divest,” “expect,” “intend,” “focus,” “leverage,” “grow,” “will,” “enhance,” and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the expected benefits of the proposed sale, impacts of the proposed sale on the Company’s business, financial results, opportunities, and future plans, and other statements that are not historical facts, each of which is based on the Company’s current beliefs, expectations, estimates, and projections. These forward-looking statements are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond the Company’s control, which could cause actual results to differ materially from those indicated in the forward-looking statements. Those factors include, but are not limited to, the Company’s ability to achieve intended benefits of the sale, the expected costs of the transaction, the success of business transitions, and the risk factors set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recently filed Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. The Company disclaims and does not undertake any obligation to update, revise, or withdraw any forward-looking statement in this press release, except as required by applicable law or regulation.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210607005201/en/

FAQ

What business did Kraft Heinz sell to Hormel Foods?

Kraft Heinz sold its nuts business, including the Planters brand, in a deal worth $3.35 billion.

When was the agreement for the sale of the nuts business announced?

The definitive agreement for the sale was announced on February 11, 2021.

How will the sale of the nuts business affect Kraft Heinz's stock?

The sale is expected to enhance Kraft Heinz's growth profile and strengthen its balance sheet.

What products were included in the Kraft Heinz nuts business sale?

The sale included single variety and mixed nuts, trail mix, Nut-rition products, Cheez Balls, Cheez Curls, and Corn Nuts.

What did Kraft Heinz's CEO say about the sale?

CEO Miguel Patricio described the sale as an important milestone in the company's transformation.