Kraft Heinz is reportedly in talks to sell Planters for $3 billion to Hormel

Planters Peanuts

Daniel Acker | Bloomberg | Getty Images

Kraft Heinz is nearing a deal to sell its Planters model to Spam proprietor Hormel for roughly $3 billion, The Wall Street Journal reported Tuesday.

Hormel’s inventory spiked greater than 6% on the report earlier than closing up 3.9% at $48.75. Shares of Kraft Heinz closed down lower than 1% at $33.16.

Citing individuals accustomed to the matter, the newspaper stated that the deal may very well be introduced as early as subsequent week if the talks do not collapse.

As a part of Kraft Heinz’s multiyear turnaround effort, executives advised traders in September that they’ve modified from its portfolio as a collection of merchandise to the way it can fulfill totally different shopper wants. The firm has additionally been trimming much less standard merchandise from its lineup and offered a part of its cheese enterprise to Lactalis for $3.2 billion.

Planters is finest recognized for its nuts and snack mixes and its mascot, Mr. Peanut. In latest years, the model’s greatest splash got here from an promoting marketing campaign final 12 months that killed off Mr. Peanut and resurrected him as a child in its Super Bowl spot. The marketing campaign sparked a New Yorker cartoon and a “Saturday Night Live” chilly open. This 12 months, the model is making a gift of the $5 million it could have spent on an advert through the huge sport.

Kraft Heinz got here to personal Planters via a collection of mergers. Kraft’s acquisition of Nabisco Brands in 2000 introduced the nut model into its portfolio, then Kraft merged with Heinz in a 2015 megadeal.

Kraft Heinz and Hormel declined to remark.

Kraft Heinz’s inventory is up 13.6% over the previous 12 months, bringing its market worth to $40.5 billion. Hormel’s inventory has a market worth of $26.3 billion, after rising 3% over the previous 12 months.

Read extra in regards to the Planters sale right here.

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