Unilever completes the sale of its Spreads business to KKR, channels resources on faster rowing brands
Unilever has announced that, further to the announcement made on 15th December 2017, it has completed the sale of its Spreads business to KKR.
The deal which is reportedly worth 6.83 billion euros was conceived to rid the Anglo-Dutch consumer-goods giant of one of its worst-performing units as it focuses on faster-growing food and personal-care niches.
Unilever said it would return the net cash realized from the transaction to shareholders, “unless more value-creating acquisition alternatives arise.”
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit and, through its strategic partners, hedge funds. The company beat out competition from Apollo Global Management and CVC Capital Partners, according to people familiar with the situation. CVC and Apollo declined to comment.
Commenting earlier about the deal, Paul Polman, CEO of Unilever said “After a long history in Unilever we decided that the future of the Spreads business would lie outside the Group. The announcement marks a further step in reshaping and sharpening our portfolio for long term growth.
“The consideration recognises the market leading brands and the improved momentum we have achieved. I am confident that under KKR’s ownership, the Spreads business with its iconic brands will be able to fulfil its full potential as well as societal responsibilities.”
Johannes Huth, Head of KKR EMEA said: “The strength of the portfolio of consumer brands in Spreads provides a firm foundation for future growth. We look forward to deploying our global network and operational expertise to support the business’s growth ambitions, while continuing to follow Unilever’s responsible sourcing policies, including working towards the goal of sourcing 100 per cent sustainable palm oil by 2019.”
Unilever also announced recently that it has completed the sale of its Spreads business in Southern Africa to Remgro and the related acquisition of Remgro’s interest in Unilever South Africa.
RECOMMENDED ARTICLES
Comment
No comments found.