Hormel spins off Justin’s nut butters to private equity company

Hormel Foods is selling a majority stake in the Justin’s natural nut butter brand the Minnesota company bought nearly a decade ago.

Private equity company Forward Consumer Partners will own a 51% share of the spun-off Justin’s brand after the deal closes at the end of the year. Neither party disclosed a sale price.

Since buying Justin’s in 2016 for $286 million, Hormel added more nut butters and introduced peanut butter cups and other confections.

“This new partnership with Forward will build on that strong foundation, providing even greater focus and resources to help the business grow while we remain invested in its success,” Hormel President John Ghingo said in a news release. “It also reflects a broader strategy at Hormel Foods of finding creative ways to unlock the potential of all of our brands.”

The Austin-based company is in the midst of a “transform and modernize” initiative to return to growth after a choppy few years dealing with inflation and budget-conscious consumers.

While Hormel has frequently touted its “protein-centric” portfolio on recent earnings calls, it has not listed Justin’s among its growing brands. The company wrote down the book value of the brand by $28 million two years ago.

Hormel also owns Skippy peanut butter and the Planters brand in addition to its bacon, turkey, Spam and other meat-centric lines.