Unilever (ULVR) sells tea business to CVC Capital for €4.5bn
08:34, 19 November 2021
UK-based consumer goods giant Unilever (ULVR) has announced it will sell its global tea business, ekaterra, to CVC Capital Partners Fund VIII for €4.5bn (£3.8bn, $5bn) on a cash-free, debt-free basis.
One of the world’s leading tea businesses, ekaterra’s stable of brands includes Lipton, PG Tips, Pukka, T2 Tea and TAZO®. The business generated revenues of around €2bn in 2020.
Commenting on the sale agreement Alan Jope, CEO of Unilever, said: “The evolution of our portfolio into higher growth spaces is an important part of our growth strategy for Unilever. Our decision to sell ekaterra demonstrates further progress in delivering against our plans.
He added: “We are proud of the place our tea business has in our company’s history. We look forward to seeing ekaterra, with its strong brands and global footprint, prosper under CVC’s ownership. I would like to thank our tea colleagues around the world for their passion and commitment to our tea business and wish them well for the future.”
Pev Hooper, managing partner at CVC Capital Partners, said: “Ekaterra is a great business, built on strong foundations of leading brands and a purpose-driven approach to its products, people and communities.
He added: “Ekaterra is well positioned in an attractive market to accelerate its future growth, and to lead the category’s sustainable development. We look forward to working with the team to realise ekaterra’s full potential.”
Unilever’s stock price dipped slightly in early morning trading, down 0.38% to 3,811p.