29th Aug 2006 07:00
Unilever PLC28 August 2006 UNILEVER SIGNS AGREEMENT TO SELL EUROPEAN FROZEN FOOD BUSINESS Unilever today announced that it had reached an agreement to sell the majorityof its European Frozen Foods business to the Permira Funds for €1.725bn. Thedeal, which is subject to regulatory approval and a consultative process withthe relevant employee works councils, is expected to be completed before the endof the year. The Unilever businesses being sold in this transaction include the Frozen Foodsoperations in Austria, Belgium, France, Germany, Ireland, Netherlands, Portugaland United Kingdom. The decision to sell the businesses followed a thoroughstudy into the strategic options for the future of the Frozen Foods business. Patrick Cescau, Group Chief Executive, said: "The Frozen Foods business has beengreat for Unilever over many decades with tremendous products, iconic brands andmemorable advertising delivering value for our shareholders. Having taken thedecision to focus our portfolio on other priorities, I am confident that thebusiness will prosper under the dedicated and focused management that thePermira Funds will bring." Cheryl Potter, Partner at Permira, commented, "We are delighted the PermiraFunds are acquiring such iconic brands and look forward to supporting theirgrowth going forward. The market sees few food deals of this size and veryrarely involving brands of this stature. " Further information: • Turnover in 2005 was €1,237m and EBITDA of €174m on an on-going, fully-allocated cost basis • The transaction represents multiples of 1.4 X annual sales and 9.9 X EBITDA • The sale is expected to result in a one-off profit, after tax, in excess of €1bn • As part of normal consultation processes there will be discussions with the relevant employee works councils and Trade Unions • Unilever remains firmly committed to sustainability programmes and activities in all areas of its business, and will work with the Permira Funds to transfer knowledge and best practice in this area. • The sale includes the total frozen food portfolio under the Iglo and Bird's Eye brands in the following countries: Austria, Belgium, France, Germany Greece, Ireland, Netherlands, Portugal and United Kingdom • Unilever will retain its Frozen Food business under the brand name Findus in Italy • The sale of our Portuguese business is subject to the agreement of the JV partner in Portugal • The Frozen Food business in Spain is not included in the sale having previously been sold to Bonduelle two months ago • Ice cream is not included in the sale • Bertolli/Knorr Frozen in North America is not included in the sale Global Tim Johns Vice-President, Global Media Relations +44 20 7822 6805 Europe Tanno Massar Director, European Media Relations +31 10 217 4844 UK Helen Lo Head of Communications +44 1932 263326 August 28, 2006 About Unilever Unilever's mission is to add vitality to life. We meet everyday needs fornutrition, hygiene and personal care with brands that help people feel good,look good and get more out of life. Unilever is one of the world's leading suppliers of fast moving consumer goodswith strong local roots in more than 100 countries across the globe. Itsportfolio includes some of the world's best known and most loved brandsincluding twelve €1 billion brands and global leadership in many categories inwhich the company operates. The portfolio features brand icons such as Knorr,Hellmann's, Flora, Bertolli, Dove, Lux, Pond's, Lynx, Persil, Domestos, andMarmite. Unilever has around 206,000 employees in approaching 100 countries and generatedannual sales of €40 billion in 2005. For more information about Unilever and itsbrands, please visit www.unilever.com. SAFE HARBOUR STATEMENT: This announcement/document (adjust as applicable) maycontain forward-looking statements, including 'forward-looking statements'within the meaning of the United States Private Securities Litigation Reform Actof 1995. Words such as 'expects', 'anticipates', 'intends' or the negative ofthese terms and other similar expressions of future performance or results andtheir negatives are intended to identify such forward-looking statements. Theseforward-looking statements are based upon current expectations and assumptionsregarding anticipated developments and other factors affecting the Group. Theyare not historical facts, nor are they guarantees of future performance. Becausethese forward-looking statements involve risks and uncertainties, there areimportant factors that could cause actual results to differ materially fromthose expressed or implied by these forward-looking statements, including, amongothers, competitive pricing and activities, consumption levels, costs, theability to maintain and manage key customer relationships and supply chainsources, currency values, interest rates, the ability to integrate acquisitionsand complete planned divestitures, physical risks, environmental risks, theability to manage regulatory, tax and legal matters and resolve pending matterswithin current estimates, legislative, fiscal and regulatory developments,political, economic and social conditions in the geographic markets where theGroup operates and new or changed priorities of the Boards. Further details ofpotential risks and uncertainties affecting the Group are described in theGroup's filings with the London Stock Exchange, Euronext Amsterdam and the USSecurities and Exchange Commission, including the Annual Report & Accounts onForm 20-F. These forward-looking statements speak only as of the date of thisannouncement/document (adjust as applicable). Except as required by anyapplicable law or regulation, the Group expressly disclaims any obligation orundertaking to release publicly any updates or revisions to any forward-lookingstatements contained herein to reflect any change in the Group's expectationswith regard thereto or any change in events, conditions or circumstances onwhich any such statement is based. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Unilever