Kraft Heinz sells nuts enterprise, which includes Planters, to Hormel for $3.35 billion

Mr. Peanut is becoming a member of forces with Spam.

Kraft Heinz announced Thursday it has bought its Planters and its other nuts corporations to Spam maker Hormel for $3.35 billion.

The funds offer features most Planters merchandise and the Corn Nuts brand. Hormel will also obtain the world wide intellectual home legal rights to the two brands, matter to current third-bash licenses in other nations around the world. The nuts small business contributed about $1.1. billion in revenue very last 12 months to Kraft Heinz, primarily targeted in the U.S.

Shares of Kraft Heinz rose far more than 1% in premarket trading just after the enterprise conquer Wall Street’s estimates for its fourth-quarter earnings and revenue. Hormel’s inventory was flat.

As component of Kraft Heinz’s multiyear turnaround effort, executives explained to buyers in September that they have modified from wanting at its portfolio as a sequence of goods to how it can fulfill distinct client demands. The business has also been trimming significantly less-common products from its lineup and sold aspect of its cheese organization to Lactalis for $3.2 billion.

In a statement, Kraft Heinz CEO Miguel Patricio stated the nuts sale allows the company to concentration on other snack makes, like Lunchables and P3.

Hormel CEO Jim Snee reported that the acquisition broadens its scope for long run bargains in the snacking category. “The acquisition of the Planters enterprise adds an additional $1 billion manufacturer to our portfolio and considerably expands our presence in the expanding snacking house,” he claimed in a statement.

Planters is ideal regarded for its nuts and snack mixes and its mascot, Mr. Peanut. In the latest a long time, the brand’s largest splash arrived from an promotion marketing campaign last yr that killed off Mr. Peanut and resurrected him as a infant in its Super Bowl place.

Hormel’s other models consist of Skippy and Wholly Guacamole.