Anglo-Dutch FMCG giant Unilever has completed the long-awaited sale of its spreads business, having secured a deal worth €6.825 billion ($8.04 billion) on a cash-free, debt-free basis with investment firm KKR.
Unilever’s Spreads business includes brands such as Becel, Flora, Country Crock, Blue Band, I Can’t Believe It’s Not Butter, Rama and ProActiv. It operates across 66 countries and had a turnover of €3.032 billion ($3.57 billion) in 2016.
Commenting on the move, Unilever CEO Paul Polman said: “In April of this year we set out our 2020 programme to accelerate sustainable value creation. After a long history in Unilever we decided that the future of the Spreads business would lie outside the Group. The announcement today marks a further step in reshaping and sharpening our portfolio for long term growth. The consideration recognises the market leading brands and the improved momentum we have achieved. I am confident that under KKR’s ownership, the Spreads business with its iconic brands will be able to fulfil its full potential as well as societal responsibilities”.
Unilever first confirmed it was looking to divest its spreads business earlier in 2017. It subsequently sold its South African spreads arm to investment holding Remgro.
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