Planters primarily sells nuts and snack mixes, with labels featuring the tophat-wearing and monocled Mr. Peanut mascot.
Photo: Richard B. Levine/Zuma Press
Kraft Heinz Co. KHC 0.45% is nearing a deal to sell its Planters snack business to Skippy peanut butter owner Hormel Foods Corp. HRL 3.92% , according to people familiar with the matter.
A deal, valuing the century-old brand at around $3 billion, could be announced as soon as next week, assuming the talks don’t fall apart, the people said.
Planters primarily sells nuts and snack mixes, with labels featuring the tophat-wearing and monocled Mr. Peanut mascot.
In addition to its eponymous chili and deli meats, Austin, Minn.-based Hormel sells other grocery items and protein-centric foods including Skippy and Justin’s nut butters. The company, which has a market value of about $25 billion, has been an active acquirer in recent years as it diversifies. A deal for Planters would be by far its largest to date.
Kraft Heinz, the product of a 2015 merger of the two well-known food companies, has been divesting brands after it struggled to keep up with shifting consumer tastes. The maker of Heinz ketchup and Oscar Mayer deli meats has said the moves will help the company simplify its business and focus on its most promising brands.
Write to Cara Lombardo at [email protected] and Annie Gasparro at [email protected]
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