It’s a good day for Mr. Peanut, as the struggling brand will soon have a new home.
Hormel has made moves to acquire the Planters brand, including Mr. Peanut, from Kraft in a $3.35 billion deal closing sometime this year.
The sale will give Hormel ownership of most products in the Planters brand including trail mix, Corn Nuts, Cheez Balls, Cheez Curls, and mixed nuts.
Letting go of Planters will allow Kraft the opportunity to focus on its more successful products.
The deal is the largest acquisition in Hormel history and will expand its lineup to more snack foods.
Kraft has recently been struggling to keep up with the evolving tastes of consumers, who are leaning further away from processed foods.
Kraft Heinz (KHC) recently outlined a plan to improve business, which included prioritizing quick meals, condiments, and desserts. The company is also focusing on its P3 products, which is a pack of cheese, nuts, and deli meats, marketed as a “real food snack.”
Shares of Kraft Heinz rose more than 1% during premarket trading after the company beat estimates for its fourth-quarter earnings.
The sale of the Planters brand is just the most recent in the company’s slimming down. Kraft Heinz recently sold part of its cheese business to Lactalis for $3.2 billion.
Hormel plans to approach the Planters brand much as it did for Skippy, which it acquired in 2013. Skippy has been one of the most successful acquisitions for Hormel in recent history.
Hormel is the maker of Spam, Skippy, and Wholly Guacamole.