The Hormel Foods Corporation said on Thursday that it had agreed to buy the Skippy peanut butter business from Unilever for $700 million.
Unilever, the British-Dutch food and consumer products giant, announced in October that it was considering selling Skippy, the No. 2 peanut butter brand in the United States, behind J.M. Smucker's Jif, in order to focus on emerging markets. Skippy has annual sales of roughly $370 million, with $100 million of that coming from outside the United States. It is the leading peanut butter brand in China.
It is the biggest acquisition by Hormel, known primarily for its fresh, cured, smoked and frozen meats Non-frozen groce ry products account for 14 percent of its annual revenue, according to Thomson Reuters data. The last big purchase by the Austin, Minn.-based company was its $334 million acquisition of the Turkey Store Company in 2001, according to Standard & Poor's Capital IQ data.
Jeffrey M. Ettinger, chief executive of Hormel Foods, said in a statement: “The acquisition of the Skippy peanut butter business represents a significant opportunity for Hormel Foods. It allows us to grow our branded presence in the center of the store with a non-meat protein product and it reinforces our balanced portfolio.â€
Barclays is advising Hormel Foods.
