Some of Kellogg Co.'s (K) best-known brands of cookies and snacks are drawing a hungry crowd of bidders.
B&G Foods, Twinkie-maker Hostess Brands and Nutella-owner Ferrero are the lead bidders in a potential $1.5 billion deal for Kellogg's Keebler, Famous Amos and fruit snacks business, CNBC reports, citing sources familiar with the deal.
Kellogg stock closed up 0.25% Friday at $59.43.
The Battle Creek, Mich.-based food giant announced in November that it would be exploring the sale of its cookies and fruit snacks business in order to gain a "sharper focus to its core businesses."
Kellogg also announced a new organizational structure at the time that would consolidate "morning foods," snacks and frozen foods into a single unit that would account for 80% of the company's revenue.
The plan also calls for building a single, U.S. sales force and building an "end-to-end supply chain" that will include everything from procurement to manufacturing, customer service and logistics.
Kellogg also outlined plans to invest in new "eCommerce and Integrated Business Planning capabilities," the company said in a statement.
"Kellogg Company's Deploy for Growth Strategy, announced earlier this year, calls for the company to sharpen our focus and align our resources around our biggest opportunities to grow our top line and return to long-term sustainable growth," said Steve Cahillane, Kellogg chairman and CEO, in a statement when the sale plans were announced.