Mr. Peanut joins the Skippy family in a $ 3.4 billion sale

Now he has a new home: Kraft is selling Planters to Hormel, the maker of Spam and Skippy, in a $ 3.35 billion deal.

The sale, which is expected to close this year, gives Hormel ownership of most of the Planters brand products, including mixed nuts, trail mix, Corn Nuts, Cheez Balls and Cheez Curls. Planters brought in about $ 1 billion in sales in 2020.

For Kraft, ditching offers Planters the chance to focus on the most successful brands like Lunchables, the company said in a press release on Thursday. The deal also helps Hormel expand its snack offering at a time when people are eating more at home.

Miguel Patricio, CEO of Kraft Heinz, has led an attempt to turn around Kraft Heinz’s (KHC) outlook around.

Before the pandemic, Kraft had a tough time. Many on Wall Street said it has failed to adapt to changing consumer tastes, who shy away from processed foods.

With Baby Nut, Planters solves the problem of their deceased mascot Mr.  Peanut on
Analysts also have questioned the strategic decisions of private equity firm 3G, which partnered with Berkshire Hathaway (BRKA) buy Heinz first and then merge with Kraft in a 2015 deal. After Berkshire Hathaway, 3G is the company’s second largest shareholder. After the merger, the combined company worked to cut costs – at the expense of much-needed innovation, Wall Street analysts said.

In 2019, the company announced a $ 15 billion write-off on its Kraft and Oscar Mayer brands. It later announced a write-off of nearly $ 500 million in the value of several other underperforming brands, including Velveeta, Maxwell House and Miracle Whip.

But the pandemic, which has prompted people to stock up on pantries and nostalgic food, has boosted Kraft sales.

In the fourth quarter of 2020, net sales grew 6% to $ 6.9 billion, ahead of Wall Street expectations. The company’s shares fell nearly 2% before the market opened on Thursday.

– CNN’s Paul R. La Monica contributed to this report.

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