Kraft Heinz sells nuts enterprise, including Planters, to Hormel for $3.35 billion

Planters Honey Roasted Nuts

Tiffany Hagler-Geard | Bloomberg | Getty Images

Mr. Peanut is becoming a member of forces with Spam.

Kraft Heinz introduced Thursday it has offered its Planters and its different nuts companies to Spam maker Hormel for $3.35 billion.

The money deal contains most Planters merchandise and the Corn Nuts model. Hormel can even obtain the worldwide mental property rights to the 2 manufacturers, topic to current third-party licenses in different international locations. The nuts enterprise contributed about $1.1. billion in gross sales final 12 months to Kraft Heinz, largely centered within the U.S.

Shares of Kraft Heinz rose greater than 1% in premarket buying and selling after the corporate beat Wall Street’s estimates for its fourth-quarter earnings and income. Hormel’s inventory was flat.

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

In a press release, Kraft Heinz CEO Miguel Patricio stated the nuts sale allows the corporate to deal with different snack manufacturers, like Lunchables and P3.

Hormel CEO Jim Snee stated that the acquisition broadens its scope for future offers within the snacking class. “The acquisition of the Planters business adds another $1 billion brand to our portfolio and significantly expands our presence in the growing snacking space,” he stated in a press release.

Planters is greatest identified for its nuts and snack mixes and its mascot, Mr. Peanut. In latest years, the model’s largest 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.

Hormel’s different manufacturers embrace Skippy and Wholly Guacamole.

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Written by Business Boy


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