Skippy Peanut Butter Brand Up for Sale

by Christopher Freeburn | October 4, 2012 10:58 am

Skippy Peanut Butter Brand Up for Sale

Unilever (NYSE:UL[1]) is searching for a suitor[2] for its Skippy peanut butter brand.

Selling Skippy could bring between $300 million and $400 million to the Anglo-Dutch consumer products conglomerate. Unilever has retained Lazard (NYSE:LAZ[3]) to locate a buyer and oversee a deal to sell the brand, Bloomberg noted.

With 18.1% of the market, Skippy is the second-ranked peanut butter in the U.S., behind the popular Jif brand, owned by J.M. Smucker (NYSE:SJM[4]). It produced $300 million in sales last year.

Reducing its presence in the foods business it part of a larger restructuring effort at Unilever intended to shed non-essential businesses and focus more closely on higher-margin health and beauty products.

Recently, Unilever sold its Bertolli and P.F. Chang’s frozen foods brands[5] to ConAgra (NYSE:CAG[6]) for $267 million.

Still, food products accounted for 30% of Unilever sales last year.

Analysts speculated that Unilever could eventually sell Skippy for more than $400 million.

Shares of Unilver rose fractionally in Thursday morning trading in New York.

Endnotes:
  1. UL: http://studio-5.financialcontent.com/investplace/quote?Symbol=UL
  2. searching for a suitor: http://www.bloomberg.com/news/2012-10-04/unilever-said-to-put-skippy-peanut-butter-brand-up-for-sale.html
  3. LAZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=LAZ
  4. SJM: http://studio-5.financialcontent.com/investplace/quote?Symbol=SJM
  5. Bertolli and P.F. Chang’s frozen foods brands: http://investorplace.com/2012/09/conagra-plans-100m-u-s-factory-expansion/
  6. CAG: http://studio-5.financialcontent.com/investplace/quote?Symbol=CAG

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