US: Hormel acquires Unilever's Skippy businesses
Hormel acquires Skippy
Unilever, which announced it was "considering options" for Skippy in October, announced this afternoon it has reached an agreement to sell Skippy as it looks to "sharpen" its global portfolio.
"As we continue to sharpen our portfolio to deliver sustainable growth for Unilever, we believe that the potential of the Skippy brand can now be more fully realised with Hormel Foods," Kees Kruythoff, president of Unilever North America, said.
The news looks set to reignite ongoing speculation that Unilever could be pulling back from its food portfolio in order to focus on its faster growing personal care business.
The transaction includes Skippy manufacturing facilities in Little Rock, Ark, and Weifang, China. Skippy generates annual turnover of around $370m and the deal is expected to close early this year.
Unilever Agrees to Sell Global Skippy Business to Hormel Foods03/01/2013ENGLEWOOD CLIFFS, N.J. - Jan. 3, 2013 - Unilever today announced that it has signed a definitive agreement for the sale of its global Skippy business to Hormel Foods for a total cash consideration of approximately $700 million.
The transaction includes Unilever's Skippy manufacturing facilities in Little Rock, Ark, and Weifang, China (located in the Shandong province).Kees Kruythoff, president of Unilever North America, said: "Skippy is an iconic brand with presence all around the world. As we continue to sharpen our portfolio to deliver sustainable growth for Unilever, we believe that the potential of the Skippy brand can now be more fully realized with Hormel Foods."Skippy's annual turnover is approximately $370 million. The transaction, subject to regulatory approval and customary closing conditions, is expected to close early in 2013.
Original source: Unilever
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