22nd May 2014 08:39
LONDON (Alliance News) - Anglo-Dutch consumer goods giant Unilever PLC said Thursday it is selling its North America pasta sauces business, including the Ragu and Bertolli brands, to Japanese condiments maker Mizkan Group, in a deal worth USD2.15 billion.
Unilever, the maker of consumer products including Dove soaps and Ben & Jerry's ice cream, had said last month that its was undertaking a "strategic review" of its North American pasta sauces businesses, and said that it was also considering sell its Slim Fast weight loss brand.
Unilever said Thursday the disposal of Ragu and Bertolli to Mizkan allows its to "sharpen its focus within its foods business".
"The Ragu and Bertolli business leads the pasta sauce category in the United States, and we believe that the potential of both brands can be fully realized with Mizkan," said President of Unilever North America Kees Kruythoff in a statement.
Annual revenue for Ragu and Bertolli is more than USD600 million.
Unilever said the deal, which is subject to regulatory approval and customary closing conditions, is expected to close by the end of June, and includes two production facilities - a sauce processing and packaging facility in Owensboro in Kentucky, and a tomato processing facility in Stockton in California.
Unilever shares were down 1.0% at 2,669.00 pence Thursday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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