Unilever hands over global tea division in $5.1 billion deal
Following a year-long review, FMCG giant, Unilever is finally selling off its global tea global tea business Ekaterra to private equity and investment advisory firm—CVC Capital Partners in a $5.1 billion.
According to Unilever, Ekaterra which hosts a portfolio of 34 tea brands including Lipton, PG Tips, Pukka Herbs and TAZO will be sold to CVC’s Capital Fund VIII on a cash and debt free basis in a process that is expected to conclude in the second half of 2022.
Alan Jope, CEO of Unilever said: “The evolution of our portfolio into higher growth spaces is an important part of our growth strategy for Unilever. Our decision to sell ekaterra demonstrates further progress in delivering against our plans.”
“We are proud of the place that our Tea business has in our company’s history. We look forward to seeing ekaterra, with its strong brands and global footprint, prosper under CVC’s ownership. I would like to thank our Tea colleagues around the world for their passion and commitment to our Tea business and wish them well for the future.”
Earlier in 2020, Unilever global headquarters had announced a strategic review of the global tea business. The review, according to Unilever, prompted the decision to retain the tea businesses in India and Indonesia, as well as the partnership interests in the ready-to drink joint venture, while noting that the tea business potential can best be achieved as a separate entity.
In January, Unilever also notified The Nigerian Stock Exchange and esteemed shareholders of its plan to separate the Unilever Nigeria Plc tea business into a separate legal entity.
The consumer goods giant noted that the planned separation which is expected to be concluded by the end of this year will go through the normal approval process.
RECOMMENDED ARTICLES
Comment
No comments found.