Peanut plants
Daniel Acker | Bloomberg | Getty Images
Kraft Heinz is approaching a deal to sell his Planters brand to owner Spam Hormel for about $ 3 billion, the Wall Street Journal reported Tuesday.
Hormel shares rose by more than 6%, but recently rose by about 3.8%. Kraft Heinz shares became positive, rising below 1%.
Citing people familiar with the matter, the newspaper said the deal could be announced as early as next week if talks do not fall apart.
As part of Kraft Heinz’s multi-year effort, executives told investors in September that they have shifted from looking at its portfolio as a product to how it can meet consumer needs. The company also cut less popular products from its range and sold part of the cheese business to Lactalis for $ 3.2 billion.
Planters is best known for his mixtures of nuts and snacks and his mascot, Mr. Peanut. In recent years, the biggest splash of the brand came from an advertising campaign last year that killed Mr. Peanut and resurrected him as a child in his place in the Super Bowl. The campaign triggered a New York cartoon and a cold opening of Saturday Night Live. This year, the brand is offering $ 5 million that it would have spent on an advertisement during the big game.
Kraft Heinz came to own Planters through a series of mergers. Kraft’s acquisition of the Nabisco brands in 2000 brought the walnut brand into its portfolio, then Kraft merged with Heinz into a 2015 megadeal.
Kraft Heinz and Hormel declined to comment.
Kraft Heinz shares have risen more than 14% in the past year, bringing their market value to $ 40.82 billion. Hormel shares have a market value of $ 26.45 billion, after rising by almost 6% in the last 12 months.
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