Food company, Hormel Foods Corporation(HRL) reported on Thursday that they have a agreed to purchase Skippy peanut butter from Unilever(UL).

HRL reported that they have entered into an agreement with UL to purchase its Skippy peanut butter business for $700 million.

The business is expected to see sales of $370 million, with $100 million from international sales. Although the company does not expect a significant increase in EPS in 2013, HRL expects to see an increase in EPS in the range of 13 cents and 17 cents in 2014.

Hormel Foods shares were mostly flat during premarket trading Thursday. The stock has increase 9% in the past year.

The Bottom Line
Shares of Hormel Foods (HRL) have a 2.12% dividend yield, based on last night’s closing stock price of $32.01. The stock has technical support in the $29.00-$29.50 price area. The stock is trading near all-time highs.

Hormel Foods Corporation(HRL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

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