Headlines this morning include Hormel buying a peanut butter brand, Safeway's chairman and CEO stepping down, reusable cups at Starbucks, AMD naming a new CFO, Mellanox Technologies lowering its guidance and a unit of Berkshire Hathaway buying a couple of solar projects from SunPower Corp.
The company that makes SPAM is buying one of the country's most recognizable peanut butter brands, Skippy from Unilever (UL). The deal is for about $700 million and Hormel (HRL) said it will contribute modestly to earnings in fiscal 2013 and will add between 13 and 17 cents per share in 2014.
The long-time chairman and CEO of Safeway (SWY) plans to retire in May after more than 20 years with the grocery store chain. The company said it will conduct a search for a replacement both internally and externally. Steve Burd plans to spend more time working on healthcare, one of his pursuits while he was at Safeway.
Starbucks (SBUX) said it will begin selling $1 reusable plastic cups starting Thursday. The company already gives a 10-cents discount to customers who bring in a reusable cup and hopes these new cups will increase the number of people bringing their own cups. The company said in 2008 that it wanted to serve 25% of drinks in reusable cups by 2015, but has since reduced that goal to 5%.
Advanced Micro Devices
Chip-maker Advanced Micro Devices (AMD) appointed Devinder Kumar as its Chief Financial Officer. Kumar has been the interim CFO since September of 2012 when Thomas Seifert stepped down.
Mellanox (MLNX) said on Wednesday that it expects revenues of $119 million to $121 million in the fourth quarter, compared to its previous guidance of $145 million to $150 million. The company said the weak performance is due to a technical issue as well as weak demand.
MidAmerican Energy will buy a pair of solar power plants currently under construction in southern California from SunPower Corp. (SPWR). MidAmerican, which is a unit of Warren Buffett's Berkshire Hathaway (BRK.A) will pay between $2 billion and $2.5 billion for the projects with will generate 579 megawatts of electricity when they are finished in 2015.