Unilever (UL) Looks to Unload More Food Assets with Potential Sale of Skippy Brand (CAG) (BGS)
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Unilever (NYSE: UL) shares ticked slightly higher Friday morning amid news that its peanut butter brand might have attracted the attention of at least two major players in the food industry.
According to Bloomberg, both ConAgra (NYSE: CAG) and B&G Foods (NYSE: BGS) are interested in Unilever's Skippy brand. Sources said that the unit might garner as much as $500 million and a deal might be done before the end of 2012.
Unilever CEO Paul Polman is weighing the sales as he looks to sharpen the focus of Unilever on brands such as Tresemme and Dove. One Bernstein analyst agreed, saying the future of Unilever isn't peanut butter and the Skippy brand has limited global reach. About 70 percent of Skippy's annual revs come from inside the U.S.
Competitor's to Skippy include J.M. Smucker's (NYSE: SJM) Jif and ConAgra's Peter Pan brands.
Over the last year, Unilever sold its P.F. Chang's and Bertolli frozen foods business to ConAgra for about $267 million and its Mrs. Dash and Molly McButter brands to B&G.
Shares of Unilever are holding firmly in positive territory, up 0.2 percent on the session.
According to Bloomberg, both ConAgra (NYSE: CAG) and B&G Foods (NYSE: BGS) are interested in Unilever's Skippy brand. Sources said that the unit might garner as much as $500 million and a deal might be done before the end of 2012.
Unilever CEO Paul Polman is weighing the sales as he looks to sharpen the focus of Unilever on brands such as Tresemme and Dove. One Bernstein analyst agreed, saying the future of Unilever isn't peanut butter and the Skippy brand has limited global reach. About 70 percent of Skippy's annual revs come from inside the U.S.
Competitor's to Skippy include J.M. Smucker's (NYSE: SJM) Jif and ConAgra's Peter Pan brands.
Over the last year, Unilever sold its P.F. Chang's and Bertolli frozen foods business to ConAgra for about $267 million and its Mrs. Dash and Molly McButter brands to B&G.
Shares of Unilever are holding firmly in positive territory, up 0.2 percent on the session.
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