Kraft Heinz (KHC) - Get Kraft Heinz Company Report is nearing a deal to sell its Planters business to Hormel Foods (HRL) - Get Hormel Foods Corporation Report, a move that would value the nuts and snacks unit at about $3 billion, according to a report Tuesday.
The sale could be unveiled as early as next week, assuming talks don't fall apart, people familiar with the matter told The Wall Street Journal.
Planters, founded in 1906 in Wilkes Barres, Pa., by two Italian immigrants, primarily sells nuts and snack mixes.
Hormel sells numerous meats and other grocery items, including Skippy peanut butter.
Planters would be the largest acquisition to date for Hormel, Austin, Minn.
Shares of Kraft Heinz, Pittsburgh, at last check were up 0.6% to $33.46 while Hormel shares jumped 4.6% to $49.09.
In September, Kraft Heinz said it would cut $2 billion of costs over four years and use the funds to boost marketing spending 30%.
The company has struggled since Kraft and Heinz merged five years ago, with analysts seeing it as too slow to alter older brands and unwilling to commit adequate resources to marketing.
"Through 2024, the company’s Ops Center has identified and is targeting" some $2 billion of "gross productivity efficiencies to offset inflation and critical investments to support the company’s growth initiatives,” Kraft Heinz said.
On Monday, Planters announced that Mr. Peanut -- the brand's iconic, peanut-shaped mascot who the Journal reported was introduced in 1916 -- would return to spearhead a charitable drive the company is executing in lieu of paying $5 million for a Super Bowl commercial spot.