Unilever looks to sell its Spreads business to KKR
London-based Unilever, a leading brand in personal care, home care, food and refreshments has received an offer from KKR — a global investment firm that manages multiple asset classes including private equity, energy, infrastructure, real estate and credit — to purchase its global Spreads business. The offer is for €6.825 billion in Euros and is expected to be on a cash-free and debt-free basis.
"In April of this year, we set out our 2020 programme to accelerate sustainable value creation. After a long history in Unilever we decided that the future of the Spreads business would lie outside the Group. The announcement today marks a further step in reshaping and sharpening our portfolio for long-term growth. The consideration recognizes 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 fulfill its full potential as well as societal responsibilities," Paul Polman, CEO of Unilever said.
Part of Unilever Spread’s business includes the brands Becel, Flora, Country Crock, Blue Band, I Can’t Believe It’s Not Butter, Rama and ProActiv. Current CEO of Spreads, Nicolas Liabeuf will continue to lead the business lead.
"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 percent sustainable palm oil by 2019,” Johannes Huth, head of KKR EMEA said.
The offer is subject to certain regulatory approvals, employee consultation in certain jurisdictions and expected to be completed by mid-2018.
"In April of this year, we set out our 2020 programme to accelerate sustainable value creation. After a long history in Unilever we decided that the future of the Spreads business would lie outside the Group. The announcement today marks a further step in reshaping and sharpening our portfolio for long-term growth. The consideration recognizes 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 fulfill its full potential as well as societal responsibilities," Paul Polman, CEO of Unilever said.
Part of Unilever Spread’s business includes the brands Becel, Flora, Country Crock, Blue Band, I Can’t Believe It’s Not Butter, Rama and ProActiv. Current CEO of Spreads, Nicolas Liabeuf will continue to lead the business lead.
"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 percent sustainable palm oil by 2019,” Johannes Huth, head of KKR EMEA said.
The offer is subject to certain regulatory approvals, employee consultation in certain jurisdictions and expected to be completed by mid-2018.