Unilever 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, in a prepared statment: “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.