Unilever agreed to sell its spreads and margarine business to KKR – a leading, global investment firm with more than €123 Bn ($150 Bn) in assets under management – for €6.8 Bn ($8.0 Bn).
Unilever, one of the world’s leading suppliers of personal care, home care and food and refreshment products decided to sell the shrinking spreads business and concentrate on faster-growing products. The brands to be sold include Flora, Becel, Country Crock, Blue Band, I Can’t Believe It’s Not Butter, Rama and ProActiv. The move is a part of a strategy shift toward long-term growth products. Unilever’s spreads business represents about 7% of the company’s global revenue and is present in 66 countries. The offer values the business at roughly 10x last year’s EBITDA of €680 M. As of 2016, the business had €3.03 Bn in turnover.
KKR supports Unilever’s environmental policies and its plan to source 100% sustainable palm oil by 2019. The investment firm is planning to emphasize the benefits of margarine to consumers, launch new products and grow internationally.
The auction started in April and attracted strong bidders, among which CVC Capital Partners and Apollo Global Management.
