Peanuts planters
Daniel Acker | Bloomberg | Getty Images
Kraft Heinz is approaching an agreement to sell its Planters brand to Spam owner Hormel for about $ 3 billion, the Wall Street Journal reported on Tuesday.
Hormel’s shares soared more than 6% in the report, but recently rose about 3.8%. Kraft Heinz shares were positive, up less than 1%.
Citing people familiar with the matter, the newspaper said the deal could be announced as early as next week if negotiations do not fall apart.
As part of Kraft Heinz’s multi-year recovery effort, executives told investors in September that they shifted from looking at their portfolio as a series of products to how it can meet different consumer needs. The company also cut less popular products from its line and sold part of its cheese business to Lactalis for $ 3.2 billion.
Planters is best known for its mixtures of nuts and snacks and its mascot, Mr. Peanut. In recent years, the brand’s biggest splash came from an advertising campaign last year that killed Peanut and resurrected him as a baby in his Super Bowl ad. The campaign spawned a New Yorker cartoon and a Saturday Night Live debut. This year, the brand is donating the $ 5 million it would have spent on an ad during the big game.
Kraft Heinz came to own Planters through a series of mergers. Kraft’s acquisition of Nabisco Brands in 2000 brought the nut brand to its portfolio, so Kraft merged with Heinz in a 2015 megadeal.
Kraft Heinz and Hormel declined to comment.
Kraft Heinz shares were up more than 14% over last year, raising its market value to $ 40.82 billion. Hormel’s shares have a market value of $ 26.45 billion, after rising almost 6% in the last 12 months.
Read more about selling Planters here.