Hormel nears $3b deal to buy Heinz’s Planters

Bloomberg

Hormel Foods Corp is nearing a deal to buy the Planters snack business from Kraft Heinz Co in a deal valuing the peanut brand at about $3 billion, according to a person familiar with the matter.
A deal could be reached as soon as next week, according to the person, who did not want to be identified discussing the talks.
Hormel shares jumped after the Wall Street Journal reported the negotiations earlier Tuesday, with the stock closing up 3.9% in New York. Kraft Heinz fell less than 1%.
Covid-19 has boosted sales for packaged-food companies as consumers stay home and cut down on meals from restaurants — potentially making some brands more
attractive. Kraft Heinz’s revenue rose in the last three quarters, rebounding from an earlier slump.
The company, known for brands such as Velveeta cheese and Capri-Sun, has sought to shore up its operations with a multibillion-dollar cost-cut plan. Formed in a 2015 merger orchestrated by Warren Buffett and 3G Capital, Kraft Heinz has also explored divestitures in a bid to refocus on core products, agreeing in September to sell its natural cheese business to a division of Groupe Lactalis for $3.2 billion.