US-based food manufacturer Hormel Foods has entered into a definitive agreement to acquire Justin’s, a nut butter-based snacking brand for $286m.
Justin's four nut butter-based snack lines include spreads, squeeze packs, peanut butter cups and snack packs.
Hormel Foods chairman of the board and CEO Jeffrey M. Ettinger said: "Justin's naturally delicious, high-quality nut butters, nut butter snacks and organic peanut butter cups align perfectly with our goal of complementing our existing brands with new offerings that resonate with younger, on-the-go and more health-conscious consumers."
Justin's founder Justin Gold said: "I look forward to working with the Hormel Foods team, a company that shares our passion for innovation, quality and creating the best possible consumer experience.
"My goal has always been to build something truly special and Hormel Foods is the right partner to make this an enduring and far-reaching brand."
The acquisition will make Justina subsidiary of Hormel's grocery products segment and willcontinue to function from its current office in Boulder, Colorado.
While Hormel Foods was advised by HT Capital Advisors in the transaction and Juston's exclusive advisor was Piper Jaffray & Co.
The transaction will be funded mostly by cash reserves available with the company and the remaining part by short-term draw from Hormel's credit facility, Hormel's CFO Jody Feragen told The Denver Post.
Last year, Hormel acquired Applegate Farms, which owns the Applegate natural and organic meats brand, for $775m.
Claimed to be the first brand to market nut butters in single-serve squeeze packs, Justin's nut butters are made by using a grinding process to create a different texture and flavor experience. Justin's seven varieties offer 4-8 grams of protein per serving.
In the confection segment, Justin's Ddrk, milk and white chocolate peanut butter cups are US department of agriculture (USDA)-certified organic and are made with Rainforest Alliance Certified cocoa.