Kraft expects the transaction to close in the first half of this year.
The deal encompasses most products sold under the Planters brand, including single variety and mixed nuts, trail mix, Nut-rition products, Cheez Balls, Cheez Curls and Corn Nuts.
“This is another momentous step in our rapid transformation,” Kraft Heinz CEO Miguel Patricio said in a statement. “It will enable us to sharpen our focus on areas with greater growth prospects and competitive advantage for our powerhouse brands. Within our Real Food Snacking platform, this means more aggressively driving real fuel for kids through Lunchables and real meal alternatives like P3.”
The business being sold contributed approximately $1.1 billion to Kraft Heinz’s net sales for fiscal 2020, primarily in the U.S. segment.
Kraft Heinz reported fourth-quarter earnings on Thursday that beat expectations. Net income was $1.03 billion, or 84 cents a share, up from $182 million, or 15 cents, in the year-ago quarter. Adjusted earnings per share were 80 cents, topping the FactSet analyst consensus of 74 cents.
Revenue hit $6.94 billion in the fourth quarter, up 6% from $6.54 billion a year earlier and above the analyst consensus of $6.82 billion.
Kraft Heinz has languished for most of the time since its Warren Buffett-backed merger in 2015, due to competitive pressure and its own missteps.
Kraft Heinz shares were at $34.44, up 0.02%, in premarket trading Thursday.