May 14 2024: According to sources familiar with the matter, Kraft Heinz is considering selling its Oscar Mayer meats business, a move that could result in a sale price ranging from $3 billion to $5 billion, as reported by the Wall Street Journal on Monday.
Oscar Mayer, renowned for its hot dogs, bacon, ham, and bologna products, has faced challenges due to declining consumer interest amid a trend towards healthier food options. In 2019, the company wrote down the value of both its Oscar Mayer and Kraft brands.
To explore potential interest in the business, Kraft Heinz (NASDAQ: KHC) has enlisted Bank of America and Centerview Partners, the report noted. While it remains uncertain who might express interest in acquiring the business, potential buyers could include private-equity firms or other players in the food industry, as mentioned by WSJ.
The report also highlights the possibility that no sale may ultimately occur.
Kraft Heinz chose not to comment on the report.
In a previous plan before its merger with H.J. Heinz in 2015, Kraft Foods had intended to separate Oscar Mayer into its own segment back in 2007.
Following the report, shares of Kraft Heinz saw a slight increase to $36.45 in afternoon trading.