Mr. Peanut is on the move.
Kraft Heinz (NASDAQ: KHC) announced Thursday that it is selling most of the products sold under the well-established Planters nuts brand to food industry peer Hormel (NYSE: HRL) for $3.35 billion in cash. The latter company pointed out that the effective price is actually around $2.79 billion due to a tax benefit of around $560 million.
The acquisition bolsters Hormel’s already-considerable portfolio of snack brands. The company owns Skippy peanut butter and the Justin’s line of treats, among other assets in the segment.