Kraft Heinz reportedly in talks to sell planters for $ 3 billion to Hormel

Kraft Heinz is set to close a deal to sell its Planters brand to the owner of Spam Hormel for around $ 3 billion, the Wall Street Journal reported on Tuesday.

Hormel stock climbed more than 6% on the report, but was recently up around 3.8%. Kraft Heinz shares turned positive, increasing less than 1%.

Citing people familiar with the matter, the newspaper said the deal could be announced as early as next week if the negotiations don’t collapse.

As part of Kraft Heinz’s multi-year turnaround drive, executives told investors in September that they had changed from seeing its portfolio as a series of products to how it can meet different consumer needs. The company also eliminated 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 nut and snack mixes and its mascot, Mr. Peanut. In recent years, the brand’s biggest sensation has come from an ad campaign last year that killed Mr. Peanut and resurrected him as a baby in his Super Bowl spot. The campaign sparked a New York cartoon and an open live Saturday night. This year, the brand is giving away the $ 5 million it would have spent on an advertisement during the big game.

Kraft Heinz became the owner of Planters through a series of mergers. Kraft’s acquisition of Nabisco Brands in 2000 brought the nut brand into its portfolio, and then Kraft merged with Heinz in a 2015 mega-space.

Kraft Heinz and Hormel declined to comment.

Kraft Heinz stock has risen more than 14% in the past year, bringing its market value to $ 40.82 billion. Hormel stock has a market value of $ 26.45 billion, after rising nearly 6% in the past 12 months.

Learn more about selling planters here.