Unilever to sell its Spreads business to KKR for €6.825 bilion
Completion is expected mid-2018
Unilever to sell its Spreads business to KKR. Unilever stressed that divestment will allow us to focus better on the highest growth business. Unilever spreads business includes brands such as Becel, Flora, Country Crock, Blue Band, I Can not Believe It's Not Butter, Rama and ProActiv. It operates in 66 countries worldwide. In 2016, the company recorded revenues of 3,032 million euros, an Ebitda (before each new carveout adjustment) of 680 million euros and assets of 1,108 million euros.
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit and, through its strategic manager partnerships, hedge funds.
Paul Polman, ceo of Unilever 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”.
Nicolas Liabeuf, ceo of Spreads, who will continue to lead the business, added: “We are excited about continuing this journey with KKR. We are confident that our business and the entrepreneurial spirit of our people will thrive further under new ownership”.
Johannes Huth, Head of KKR Emea said: “The strength of the portfolio of consumer brands in Spreads provides a firm foundation for future growth. We look forward to deploying our global network and operational expertise to support the business’s growth ambitions, while continuing to follow Unilever’s responsible sourcing policies. The investment is being funded by both the European and N. American private equity funds of KKR. Completion is expected mid-2018.
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