Hormel snaps up Skippy from Unilever

Hormel Foods has agreed to acquire the United States peanut butter brand Skippy from Unilever, the consumer goods giant, for $700m (£430m) cash, in an attempt to capitalise on rising demand for the spread overseas.

The deal reflects the drive by the branded food specialist Hormel to expand beyond meat products, such as Spam canned meat, in emerging markets including China. Following the announcement, shares in Minnesota-based Hormel jumped by 6 per cent in early trading today in New York.

Its chief executive, Jeffrey Ettinger, said Skippy, which has turnover of £370m, "allows us to grow our branded presence in the centre of the store with a non-meat protein product and it reinforces our brand portfolio".