Kraft Heinz Co. is nearing a deal to sell its Planters snack business to Skippy peanut butter owner Hormel Foods Corp., according to people familiar with the matter.
A deal, valuing the age-old brand at around $ 3 billion, could be announced next week, assuming talks don’t fall apart, people said.
Planters primarily sells nuts and snack mixes, with labels featuring the tophat-bearing and monocled Mr. Peanut mascot.
In addition to the eponymous chili and deli meats, Hormel of Austin, Minnesota sells other grocery and protein-focused foods, including Skippy and Justin’s nut butters. The company, which has a market value of approximately $ 25 billion, has been an active acquirer in its diversification in recent years. A deal for Planters would be by far the largest to date.
Kraft Heinz, the product of a 2015 merger of the two well-known food companies, has divested brands after struggling to keep up with changing consumer tastes. The maker of Heinz ketchup and Oscar Mayer deli meats said in September that the strategy will help the company simplify its operations and focus on its most promising brands.