Kraft Heinz Co. KHC, +0.53% said Thursday it has reached an agreement to sell its Planters nuts business to Hormel Foods Corp. HRL, +0.71% in a cash deal valued at $3.35 billion. The news was first reported by the Wall Street Journal in early Feb. Kraft said it expects the deal to close in the first half. The deal involves nuts sold under the Planters brand, that incudes single variety and mixed nuts, trail mix, Nut-rition products, Cheez Balls, and Cheez Curls, as well as Corn Nuts branded products. It also includes related intellectual property, subject to existing third-party licenses in some international jurisdictions. Chief Executive Miguel Patricio said the move will allow Kraft to focus on areas were greater growth possibilities. The business contributed about $1.1 billion to Kraft’s sales in fiscal 2020, mostly in its U.S. business. Shares rose 1.1% premarket, while Hormel shares were up 0.5%.
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