9th Feb 2006 07:02
Unilever PLC09 February 2006 UNILEVER TO DIVEST MAJORITY OF EUROPEAN FROZEN FOOD BUSINESS ITALIAN FROZEN FOODS BUSINESS RETAINED Unilever today announced that it had decided to put the majority of its FrozenFoods businesses in Europe up for sale. It decided to retain its Frozen Foodoperations in Italy. Patrick Cescau, Group Chief Executive, said: "Deciding to put the majority ofour European Frozen Food business up for sale has been a tough call. It has beena successful business for us over many years, we've built some great brands forconsumers with memorable advertising, and they've created real value for ourshareholders. "However, although we have made great progress in increasing profitability inrecent years growth has been harder to come by. After an exhaustive review wehave decided that the best way for us to create value is by selling the majorityof the European Frozen Food businesses." Unilever's review, which was announced in September 2005, looked at all thepossibilities for the business. The review concluded that a strategy to grow thebusinesses would not deliver satisfactory value for Unilever. - 2 - Unilever concluded that its great frozen food brands could prosper better underother ownership and that divestment was the best option. It also concluded thatnow was a good time to consider divestment as it would be likely to lead theexpected future consolidation in the frozen food sector. The Italian Frozen Food business will continue to operate as part of theUnilever business. Patrick Cescau said: "We believe it is right to retain the Italian Frozen Foodbusiness because it is inherently an attractive business with good growthprospects. It has a good track record, has strong leadership positions and isstrategically important in a number of ways. It is our biggest single businessin Italy and its retention plays an important role in future trade relations inthat country. It is also an important source of innovation and technology in theattractive frozen meals segment that is proving so successful in the US." Over time Unilever has bought and sold many businesses and factories and hasbuilt up vast experience of managing people issues both sensitively andprofessionally. It is acutely aware of the people issues and is committed toworking with the relevant employee representatives in the countries affected. Unilever's intention is to sell the business if the price is right, in whole orin part, as going concerns. -ENDS- February 9, 2006 - 3 - Notes to Editors: • The intended sale includes the total frozen food portfolio under the well-known Iglo and Birds Eye brands • Unilever has a frozen foods portfolio in 11 countries: Austria, Belgium, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal, Spain and the United Kingdom • There are five sourcing units: Cisterna - Italy Reken & Bremerhaven - Germany Lowestoft & Hull - UK • Total turnover is approximately €2 billion • The Bertolli branded frozen side dishes business in the USA will be continued • Around 3,500 people work in this area across Europe, excluding Italy • The decision does not affect Ice cream which is a strategic priority for Unilever and will be continued Press contacts: UK Trevor Gorin Head of UK Media Relations +44 20 7822 6010 Europe Tanno Massar Director, European Media Relations +31 10 217 4844 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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