Sector News

Unilever to sell tea business Ekaterra for €4.5bn

November 21, 2021
Food & Drink

Unilever has entered into an agreement to sell its global tea business Ekaterra to CVC Capital Partners Fund VIII for €4.5 billion.

Ekaterra has a portfolio of 34 tea brands, including Lipton, PG Tips, Pukka, T2 and Tazo. According to Unilever, the tea business generated €2 billion in revenue in 2020.

Following a strategic review announced last year, Unilever completed the operational separation of its tea business at the beginning of October. In its third-quarter results, the company said it was “focused on the next stage” for the business – which was expected to be either an IPO, sale or partnership.

The newly announced deal excludes Unilever’s tea business in India, Nepal and Indonesia, as well as its interests in the Pepsi Lipton ready-to-drink tea joint ventures and associated distribution businesses.

Unilever’s CEO, Alan Jope, 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.”

CVC Capital Partners managing partner, Pev Hooper, added: “Ekaterra is a great business, built on strong foundations of leading brands and a purpose-driven approach to its products, people and communities. Ekaterra is well-positioned in an attractive market to accelerate its future growth, and to lead the category’s sustainable development.”

The acquisition is subject to regulatory approvals and is expected to be completed in the second half of 2022.

By Rafaela Sousa

Source: foodbev.com

comments closed

Related News

May 15, 2022

Blurred lines: Vitafoods Europe 2022 review

Food & Drink

Upon FoodBev Media’s return from Vitafoods 2022 – which took place from 10-12 May in Geneva, Switzerland – the team reflects on the event’s aim to bring together international nutraceutical suppliers and experts from across the globe.

May 15, 2022

Crunch time: Mondelēz to dump chewing gum to take bigger bite of chocolate and biscuits markets

Food & Drink

Following a strategic review last year, Mondelēz International is planning to sell its developed chewing gum business, which includes brands Trident and Dentyne. This is in addition to offloading its Halls cough drop brand, as the food giant focuses on generating 90% of revenue in its chocolates and biscuits businesses, including baked snacks.

May 15, 2022

Givaudan strengthens natural preservation portfolio with nitrite alternative for processed meat

Food & Drink

Givaudan has unveiled NaNino+, a patent-pending combination of plant-based ingredients and natural flavorings that can replace nitrite in processed meat. Designed with natural ingredients, it provides a lasting multi-sensorial food experience with a good taste, color and freshness.