Unilever to sell spreads business to KKR for $8bn

NEW YORK: Unilever has agreed to sell its margarine and spreads business to US private equity firm KKR for 6.83 billion euros ($ 8.04 billion) to concentrate on faster growing products. The maker of Knorr soup and Dove soap announced the deal on Friday, hours after Reuters reported that KKR had entered exclusive talks to buy the shrinking business after outbidding rivals.

The brands to be sold include Becel, Flora, Country Crock and Blue Band. Unilever put the business up for sale in April, following a review of its assets prompted by February’s unsolicited $ 143 billion takeover attempt by Kraft Heinz.

“The announcement today marks a further step in reshaping and sharpening our portfolio for long-term growth,” said Chief Executive Paul Polman. “The consideration recognizes the market leading brands and the improved momentum we have achieved.”

The deal with Unilever is expected to close mid-2018, subject to regulatory approvals and employee con- sultations.

Unilever, whose sales unexpectedly slowed in October, said it plans to return the cash to shareholders, unless more value-creating acquisition options arise.

This year Unilever has snapped up small brands including Tazo tea, Sundial Brands and Carver Korea.

Unilever said last month it favored ending its dual Anglo-Dutch structure to become a single entity, but it has delayed a decision whether it would be based in Britain or the Netherlands.