Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Merger or Acquisition (February 2021)
18 slides from Hormel Foods's merger presentation, Feb 11, 2021
Slide 1: Hormel Foods to Acquire the Planters Snack Nuts Business
HORMEL FOODS TO ACQUIRE THE PLANTERS SNACK NUTS BUSINESS ® 1
Slide 2: Forward-Looking Information
FORWARD-LOOKING INFORMATION This presentation contains forward-looking information based on management’s current views and assumptions. Actual events may differ materially. Factors that may affect actual results include, but are not limited to: whether and when the required regulatory approvals will
Slide 3: A Global Branded Food Company
A GLOBAL BRANDED FOOD COMPANY 3
Slide 4: Hormel Foods to Acquire the Planters Brand
HORMEL FOODS TO ACQUIRE THE PLANTERS BRAND ® • Hormel Foods to acquire the Planters® snack nuts business from the Kraft Heinz Company for an adjusted purchase price of $2.79 billion in cash ($3.35 billion purchase price less a tax benefit valued at $560 million) • Structured as an asset purchase • E
Slide 5: Planters Is an Iconic Leading Snack Brand
PLANTERS IS AN ICONIC LEADING SNACK BRAND ® An Iconic $1 Billion Brand Leading Brand in Many Categories Universal Consumer Awareness Significant Retail & C-Store Presence 5
Slide 6: A Diverse Portfolio Spanning All Snack Nut Varieties
A DIVERSE PORTFOLIO SPANNING ALL SNACK NUT VARIETIES All Other 18% Peanuts Over 29% Mixed Nuts $1B 2020 Sales 24% Cashews 29% Source: Internal data. Sales mix based on fiscal 2019 actuals. 6
Slide 7: The Planters Brand Is a Continuation of Our Evolution as a Global Branded Food Company
THE PLANTERS BRAND IS A CONTINUATION OF OUR ® EVOLUTION AS A GLOBAL BRANDED FOOD COMPANY Pre-2013 2013-2019 2020+ Meat-Centric Protein-Centric Global Branded Company Company Food Company Pork and turkey Expanded beyond Global meat protein Leading retail, deli Retail-focused Strong growth and foodser
Slide 8: The Planters Brand Aligns with Our Long-Term Strategy for Growth
THE PLANTERS BRAND ALIGNS WITH OUR ® LONG-TERM STRATEGY FOR GROWTH Our Formula for Success Perfect Strategic Fit BUILDING BRANDS INNOVATION • Adds another iconic leading brand to our portfolio • Provides another platform for snacking innovation • Widens scope for future snacking acquisitions • Furth
Slide 9: Snacking and Snack Nuts Are on Trend with Today's Consumer Dynamics
SNACKING AND SNACK NUTS ARE ON TREND WITH TODAY’S CONSUMER DYNAMICS Consumers are Snacking 70% of Consumers Snack Snack Nuts are a Versatile More than Ever Multiple Times per Day Option for Many Occasions Savory Snack Growth(1) Consumer Snacking Occasions(2) No Snacks 5% +3% 1x Per 5-yr CAGR Day 24%
Slide 10: The Planters Brand Is a Clear Market Leader in Snacking and Snack Nuts
THE PLANTERS BRAND IS A CLEAR MARKET LEADER IN ® SNACKING AND SNACK NUTS Leading High Household Ubiquitous Presence in Universal Consumer Market Shares Penetration Retail and C-Store Awareness #1 Branded Market HH Penetration (2) ACV (3) Awareness (4) Shares (1) 28% 99 99 97 96 94 97% 96% Mixed Pean
Slide 11: Our Vision of Snacking Encompasses All Day Parts and Occasions
OUR VISION OF SNACKING ENCOMPASSES ALL DAY PARTS AND OCCASIONS Social Snacking Solo Snacking 11
Slide 12: Combining the Capabilities of Two Complementary Snacking Portfolios
COMBINING THE CAPABILITIES OF TWO COMPLEMENTARY SNACKING PORTFOLIOS Social Snacking Solo Snacking 12
Slide 13: Consistent History of Brand Stewardship to Ensure Relevancy and Growth
CONSISTENT HISTORY OF BRAND STEWARDSHIP TO ENSURE RELEVANCY AND GROWTH 1919 1932 1937 1987 1906 1935 +6% (1) +4% (1) +11% (1) +10% (2) Source: (1) IRI 52 weeks ended 1/24/21 – MULO – 3-year net sales CAGR; (2) Nielsen Total US xAOC 52 weeks ended 12/26/20 – 3-yr net sales CAGR. 13
Slide 14: Adds Significant Scale in Retail and Convenience Store Channels
ADDS SIGNIFICANT SCALE IN RETAIL AND CONVENIENCE STORE CHANNELS C-Store Center Store Alternate Channel (Club, Drug, Dollar) Perimeter Deli 14
Slide 15: Leveraging Our Playbook to Seamlessly Integrate the Planters Business
LEVERAGING OUR PLAYBOOK TO SEAMLESSLY INTEGRATE THE PLANTERS BUSINESS INTO OUR ORGANIZATION ® Execution Sales and Marketing Supply Chain 3 Production Capacity for Significant Facilities Growth Synergies 15
Slide 16: Attractive and Disciplined Valuation
ATTRACTIVE AND DISCIPLINED VALUATION • $3.35 billion transaction value • Structured as an asset purchase and includes a tax benefit valued at $560 million • Net purchase price of $2.79 billion (1) • Excluding tax benefit, implied 2020 EBITDA multiple of 12.5x Financial • Expected sales growth in lin
Slide 17: Strong Cash-Generating Business - No Change to Our Disciplined Capital Allocation
STRONG CASH-GENERATING BUSINESS - NO CHANGE TO OUR DISCIPLINED CAPITAL ALLOCATION Returning Cash • Dividend growth remains our top long-term priority for capital allocation to Shareholders • Continue to repurchase shares opportunistically Investments into • No change to our long-term capex investmen
Slide 18: The Planters Brand Aligns with Our Long-Term Strategy for Growth
THE PLANTERS BRAND ALIGNS WITH OUR ® LONG-TERM STRATEGY FOR GROWTH Our Formula for Success Perfect Strategic Fit BUILDING BRANDS INNOVATION • Adds another iconic leading brand to our portfolio • Provides another platform for snacking innovation • Widens scope for future snacking acquisitions • Furth