British-Dutch multinational company Unilever has completed the sale of its global Skippy business to Hormel Foods, excluding its operations in China where the transaction is pending regulatory approvals.
The pending transaction is expected to be closed later this year.
On 3 January, the two companies announced the deal, for a cash consideration of approximately $700m, which includes Unilever's Skippy manufacturing facilities in Little Rock, Arkansas, US and Weifang, China.
The acquisition is part of Hormel Foods' strategy to expand its lunchtime offerings in the US and accelerate growth in China.
Skippy peanut butter brand was introduced in 1932 and its portfolio comprises 11 varieties of peanut butter products. It is a leading brand in China and is sold in more than 30 countries across the globe with annual sales of about $370m, of which about $100m are from outside the US.
Hormel Foods manufactures luncheon meat products under Chi-Chi's, Dinty Moore, Farmer John, Herdez, Jennie-O, Lloyd's, SPAM and Stagg brands.
Unilever is a manufacturer of foods, beverages, cleaning agents and personal care products.
