(London) Food and hygiene giant Unilever has announced a € 4.5 billion deal with CVC Capital Partners to sell its tea division, which includes 34 brands including Lipton, Tazo and Pukka.
The transaction is planned in cash, and should be completed in the second half of 2022 under the guise of obtaining the required regulatory authorizations, the group said in a press release on Thursday.
The latter announced a few months ago the creation of an entity bringing together its tea brands in order to focus on its segments considered more strategic.
“Shifting our product portfolio into higher growth businesses is an important part of our strategy,” commented Group CEO Alan Jope.
The tea division, dubbed “ekaterra”, generated some 2 billion euros in revenue last year, Unilever said.
“Ekaterra is a great business built on the solid foundations of leading brands,” said Pev Hooper, partner of CVC Capital Partners, quoted in the press release, also believing that these brands were well positioned when it comes to sustainability.
The transaction, however, excludes the tea business in India, Nepal and Indonesia and a stake in a Pepsi Lipton ready-to-drink tea joint venture.
Unilever, whose broad product line includes Magnum ice creams, Cif cleaners and Dove soap, also warned last month that inflationary pressures on manufacturing costs would continue until next year. In the last quarter, its turnover had increased thanks to price increases decided largely to absorb inflation.
The stock ended down 0.84% to 3,823.00 pence on the London Stock Exchange.