US: Hormel acquires Unilever's Skippy businesses
By Katy Askew | 3 January 2013
 |
Hormel acquires Skippy |
Hormel Foods will acquire the Skippy peanut butter brand from Unilever for a consideration of around US$700m, it emerged today (3 January).
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
Sectors: Condiments, dressings & sauces, Mergers & acquisitions
Companies: Unilever, Hormel Foods
View next/previous articles
4 Jan 2013 -
Currently reading -
US: Hormel acquires Unilever's Skippy businesses
3 Jan 2013 -
Related research
Unilever Plc - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report
Datamonitor's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage....
Unilever PLC (ULVR) - Financial and Strategic SWOT Analysis Review
Unilever PLC is the world's leading supplier of fast moving consumer goods. The company offers products to cater consumer needs for nutrition, hygiene and personal care. Unilever's portfolio consists of household care, laundry products, deodorants, h...
Hindustan Unilever Limited (HINDUNILVR) - Financial and Strategic SWOT Analysis Review
Hindustan Unilever Limited (HUL) is one of the largest fast moving consumer goods company in India. The company, a subsidiary of Unilever, sells Foods and Home and Personal Care brands in various countries worldwide. The company, along with its subsi...
Related articles
The week ahead - M&S, Dairy Crest FYs, Hormel Foods H1s
UK meat processor Cranswick, dairy group Dairy Crest and Marks and Spencer, perhaps the most scrutinised name on the country's high street, are all set to announce annual results next week. In the US, Spam owner Hormel Foods will post its half-year results.
SWITZ/ASIA: Hormel signs DKSH for Asian sales, distribution
US food group Hormel Foods has enlisted DKSH, the import, sales and marketing agency in Asia, to help expand it in the region.
HOFEX: Taywell looks to China, Gulf for premium ice cream opportunity
Taywell Ice Creams is hoping to cater to affluent consumers in China and the Gulf as it seeks out premium markets for its ice creams.
Read more on this hot issue
Hormel acquires SkippyHormel Foods has acquired Skippy, the second-largest peanut butter brand in the US, from Unilever. Through the deal, Hormel hopes to bolster its overseas presence and grow the domestic business through innovation. For its part, Unilever believes that a more focused US portfolio will yield better results.
There is currently 1 comment on this article
Peanut butter did not fit anywhere in Unilever. It would be wrong to assume that this means a spin-off or sale of the total food business is either more or less likely. For what it's worth, I believe that food is too useful for Unilever as an entry point in emerging markets to give it up.
TheFoodAnalyst.com said at 3:58 pm, January 3, 2013
Reply to this comment