FDBusiness.com

Unilever has agreed to sell its global Skippy peanut butter business to Hormel Foods, the US-based food and meat products manufacturer, for a total cash consideration of approximately $700 million. The transaction includes Unilever’s Skippy manufacturing facilities in Little Rock in the US, and Weifang in China.

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.

Kees Kruythoff, president of Unilever North America, says: “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 realised with Hormel Foods.”