Kraft Heinz (NASDAQ: KHC) reported Thursday it has sold its Planters business to Hormel (NYSE: HRL) for USD3.35 Billion cash. The Agreement includes the majority of Planters products as well as the Corn Nuts brand. Kraft Heinz shares rose over 1% during premarket trading, following its positive fourth-quarter earnings and revenue.
Hormel will acquire the global intellectual property rights to the brands, dependent on existing third-party licenses within other countries. In 2020 Planters supplied about USD1.1 Billion in sales, predominantly in the U.S.
“The acquisition of the Planters business adds another $1 billion brand to our portfolio and significantly expands our presence in the growing snacking space,” Hormel Chairman, President and CEO Jim Snee said in a statement.
The deal is expected to close in early 2021.
According to Kraft CEO Miguel Patricio, the sale of its nut business will allow the company to prosper. Patricio revealed that the company is set to reinvest in profitable products such as Lunchables and P3 protein packs.
After merging in 2015, Kraft Heinz has struggled to bring in customers as they seek less processed products. Furthermore, the company has battled to stand apart from less pricey store brands.
In 2020, the company sold its natural cheese business, including its Cracker Barrel brand, to Lactalis Group for a total of USD3.2 Billion.