Kraft Heinz Co said on Thursday that it plans to sell its nuts business - including most Planters and Corn Nuts products – to Hormel Foods Corp for $3.35 billion (€2.76 billion).
Kraft Heinz shares were up 2% before the bell.
The deal, which is expected to close in the first half of 2021, includes global intellectual property rights to the brands, subject to existing third-party licenses.
Kraft Heinz also beat analysts' estimates for fourth-quarter revenue as people under pandemic lockdown bought more packaged meals, snacks and condiments.
Sales grew 6.2% to $6.94 billion in the three months ended Dec. 26, beating the average estimate of $6.82 billion, according to Refinitiv data.
“Our people’s unwavering commitment during this pandemic has been remarkable, and through it, our organization has rediscovered its agility. This has accelerated our transformation and led to the strong performance we are reporting today,” said Kraft Heinz CEO Miguel Patricio.
“We set our multi-year transformation plan this time last year. We exceeded that plan in 2020. We are increasingly confident that we will again exceed that plan in 2021. We have started the new year with our new operating model fully in place. We have momentum at our back." [Pic: ©Scandamerican/123RF.COM]