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Kraft Heinz in talks to sell Planters snack business for about $3 bln- WSJ

Credit: REUTERS/SCOTT MORGAN

Kraft Heinz Co is in talks to sell its Planters snack business to Skippy peanut butter maker Hormel Foods Corp for about $3 billion, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

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Feb 2 (Reuters) - Kraft Heinz Co KHC.N is in talks to sell its Planters snack business to Skippy peanut butter maker Hormel Foods Corp HRL.N for about $3 billion, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

The deal could be announced as soon as next week if talks do not fall apart, the Journal said, adding that the deal would be Hormel's largest to date.

Planters, which mainly sells nuts and snack mixes with labels featuring its popular Mr. Peanut mascot, would be the latest addition to Hormel's portfolio that includes chillis, frozen meats and condiments.

Sales of pantry staples surged at the beginning of the COVID-19 pandemic as consumers prepared for lockdowns, but have since waned as restrictions were lifted, leading to companies restructuring their businesses accordingly.

Kraft Heinz in September sold its natural cheese business to France's Groupe Lactalis for $3.2 billion, while Mondelez International Inc MDLZ.O bought chocolate-bar maker Hu Master Holdings last month.

Kraft and Hormel declined to comment on the report.

(Reporting by Nivedita Balu in Bengaluru; Editing by Ramakrishnan M.)

((Nivedita.Balu@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6749 4822/ Twitter: @niveditabalu;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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