Planters Peanuts
Daniel Acker | Bloomberg | Getty Images
Kraft Heinz is nearing a deal to sell its Planters brand to Spam owner Hormel for about $ 3 billion, the Wall Street Journal reported Tuesday.
Hormel’s share peaked more than 6% in the report, but had recently increased by about 3.8%. Shares of Kraft Heinz turned positive and were up less than 1%.
Citing people familiar with the matter, the paper said the deal could be announced as early as next week if talks don’t fall apart.
As part of Kraft Heinz’s multi-year turnaround effort, executives told investors in September that they no longer view the portfolio as a series of products, but that they can meet different consumer needs. The company also cut less popular products from its range and sold part of its cheese business to Lactalis for $ 3.2 billion.
Planters is best known for its nut and snack mixes and its mascot, Mr. Peanut. In recent years, the brand’s biggest splash came from an ad campaign last year that killed Mr. Peanut and brought him back to life as a baby in his Super Bowl spot. The campaign led to a New Yorker cartoon and a Saturday Night Live cold open. This year, the brand is giving away the $ 5 million it would have spent on an ad during the big contest.
Kraft Heinz became owner of Planters through a series of mergers. The acquisition of Nabisco Brands by Kraft in 2000 brought the nut brand into its portfolio, after which Kraft merged with Heinz in a mega deal in 2015.
Kraft Heinz and Hormel declined to comment.
Kraft Heinz’s stock is up more than 14% in the past year, bringing its market value to $ 40.82 billion. Hormel’s stock has a market value of $ 26.45 billion, after an increase of nearly 6% over the past 12 months.
Read more about the Planters sale here.