18th Nov 2021 16:40
(Alliance News) - Unilever PLC said Thursday it has agreed to offload its tea business, ekaterra, to CVC Capital Partners Fund VIII for EUR4.5 billion.
ekaterra, Unilever notes, runs a portfolio of 34 brands including Lipton, PG tips, Pukka, T2 and TAZO. The unit generated revenues of around EUR2 billion in 2020. Group revenue was EUR50.72 billion in 2020.
The deal is on a cash-free, debt-free basis.
Unilever Chief Executive Alan Jope 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."
The deal is still subject to regulatory clearance, but is expected to complete in the second half of 2022.
Unilever noted the sale excludes Unilever's Tea business in India, Nepal and Indonesia as well as Unilever's interests in the Pepsi Lipton ready-to-drink Tea joint ventures and associated distribution businesses.
John Davison, CEO of ekaterra, said: "ekaterra is a strong business with positive momentum and has an exciting future ahead under the new ownership of CVC. We look forward to the next stage of our journey as the world's leading Tea business."
Shares in Unilever closed 0.8% lower at 3,823.00 pence in London on Thursday.
By Paul McGowan; [email protected]
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