This closing includes the Little Rock, Ark., manufacturing facility and all sales worldwide, except sales in China. Hormel Foods expects to close the acquisition of the China based SKIPPY® peanut butter business by the end of its fiscal year 2013.
Total annual sales for the SKIPPY® peanut butter business are expected to be approximately $370 million, with nearly $100 million of those sales outside the United States. The purchase price is approximately $700 million.
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. Peanut butter is a $2 billion category with a 74 percent household penetration and is the second most popular sandwich behind ham in the United States.
Internationally, SKIPPY® peanut butter is the leading brand in China and is sold in more than 30 other countries on five continents.