Hormel Foods Corp. (NYSE:HRL), the maker of Spam meats and Dinty Moore soups, will pay Anglo-Dutch conglomerate Unilever PLC (LON:ULVR) about $700 million for its iconic Skippy peanut butter brand.
The brand, introduced in the U.S. in 1932, brings Unilever, which owns the Dove soap and Ben & Jerry’s ice cream brands, about $370 million a year in sales, with about $100 million of that outside the U.S.
Skippy is the No. 2 peanut butter brand in the U.S. with an 18 percent market share, according to Bloomberg News. Rival J.M. Smucker leads the sector with a 34 percent market share.
Unilever sold its North American frozen meals business to ConAgra Foods, Inc. (NYSE:CAG) in August 2012 for $267 million.
"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,” Jeffrey M. Ettinger, Hormel's CEO, said in a statement.
“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."
Mike Obel assigns, edits and writes stories about business, markets, finance and economics. Before coming to International Business Times, he worked on the Finance Desk of...