Twitter LinkedIn
    Tuesday, March 21
    Login
    0 Shopping Cart
    Twitter LinkedIn
    Private Equity InsiderPrivate Equity Insider
    • About Us
    • Digital Events
    • Our Network
      • Reach
      • Sponsors
      • Members
    Private Equity InsiderPrivate Equity Insider
    Home»Deals»Unilever to Sell Lipton Tea Owner to CVC Capital for $5 Billion
    Deals

    Unilever to Sell Lipton Tea Owner to CVC Capital for $5 Billion

    November 18, 2021Updated:November 18, 20212 Mins Read
    LinkedIn Facebook Twitter Email WhatsApp
    Share
    LinkedIn Facebook Twitter Email WhatsApp

    Unilever Plc, the owner of Lipton and PG Tips, agreed to sell some tea assets to buyout firm CVC Capital Partners in one of the year’s biggest carveouts by a European company.

    The transaction values the business at 4.5 billion euros ($5.1 billion) on a cash-free, debt-free basis, Unilever said in a statement Thursday, confirming an earlier report by Bloomberg News. CVC has reached an agreement with Unilever after beating out rival private equity bidders including Advent International. 

    A sale of the tea business, called ekaterra, marks a much-needed win for Unilever Chief Executive Officer Alan Jope, who’s been seeking to rejig the company’s portfolio to keep up with changing consumer tastes. The firm abandoned a planned $1 billion sale of a beauty product portfolio earlier this year after failing to attract sufficient demand from potential buyers, people familiar with the matter said.  

    “The evolution of our portfolio into higher growth spaces is an important part of our growth strategy,” Jope said. “Our decision to sell ekaterra demonstrates further progress in delivering against our plans.”

    Ekaterra has a portfolio of 34 brands including Lipton, PG tips, Pukka, T2 and TAZO, and generated about 2 billion euros in revenue last year, the company said. Unilever said it expects to complete the sale in the second half of 2022. 

    Under former CEO Paul Polman, Unilever sold its margarine and spreads business to KKR & Co. for about $8 billion. The company tried to profit from growth in herbal tea by acquiring the Pukka brand in 2017. That label will also be included in the sale.

    European buyout giant CVC oversees about $165 billion of committed capital, according to its website, after raising a record buyout fund last year. The company has invested in both high-profile brands as well as food and beverage producers before. Its holdings have included the Formula One auto racing series, Swiss watchmaker Breitling AG, Indonesian snack maker GarudaFood and Czech brewer StarBev, according to its website.

    Read more/Source: Bloomberg

    Related

    Can't stop reading? This and all news articles are property of their creators, many are not owned or provided by Private Equity Insider. As an event organizer and community platform, we curate content from reliable sources for your suggested reading, and advise you to read the full articles from the referenced authors and sources.

    Deals & Transaction PE Insider
    Share. LinkedIn Facebook Twitter Email WhatsApp

    Related Posts

    Ethical Capital Partners buys Pornhub for an undisclosed sum

    March 18, 2023

    EQT Infrastructure acquires Madison Energy Investments

    December 22, 2022

    Euroclear moves into $9.8 trillion private asset market with Goji buy

    December 21, 2022

    Recent Rule Changes Spark New Wave of Private Equity Ownership in Pro Sports

    November 29, 2022

    Comments are closed.

    Other Articles

    EQT Private Equity to sell Dorner to Columbus McKinnon for an Enterprise Value of USD 485m

    March 2, 2021

    Private equity group TPG spots opportunities after tech rout

    March 28, 2022

    Real Madrid And Barcelona Unite To Condemn Private Equity Deal With CVC

    August 6, 2021

    EQT, Mubadala Buys Envirotainer for $3 Billion Enterprise Value

    June 7, 2022

    Private Equity Insider LLC
    1212 Avenue of the Americas
    New York City 10036
    USA

    [email protected]

    Twitter LinkedIn
    © 2023 Private Equity Insider LLC. All rights reserved.
    • About
    • Terms of Use
    • Cookie Policy
    • Privacy Policy
    • Contact Us

    Type above and press Enter to search. Press Esc to cancel.

    View Cart Checkout Continue Shopping

    Sign In or Register

    Welcome Back!

    Login to your account below.


    Lost password?