Hormel Foods Corp. has entered into a definitive agreement to acquire the Skippy peanut butter business from Unilever United States Inc., Englewood Cliffs, N.J, for approximately $700 million. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the United States and other jurisdictions.
The Skippy peanut butter domestic line consists of 11 varieties of shelf-stable peanut butter products. The brand, first introduced in 1932, holds the No. 2 share in this growing center of the store category and is the leading brand in the faster growing subcategory of natural peanut butter. Internationally, Skippy peanut butter is the leading brand in China and is sold in more than 30 other countries on five continents. Total annual sales are expected to be approximately $370 million, with nearly $100 million of those sales outside the United States.
“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,” said Jeffrey M. Ettinger, Chairman of the Board, President, and CEO at Hormel Foods. “The fast-growing international line will also strengthen our global presence, and should be a useful complement to our sales strategy in China for the SPAM family of products.”