Unilever sells its tea division to investor CVC Capital Partners. The food group will receive 4.5 billion euros for this. The tea branch named ekaterra is the largest tea company in the world, according to Unilever, and includes 34 brands, including well-known names such as Lipton and Pukka. The annual turnover of ekaterra in 2020 amounted to approximately 2 billion euros.
The Indian, Nepalese and Indonesian tea activities are not included in the items for sale. Partnerships that Unilever has in the field of ready-to-drink tea drinks are also excluded from the deal.
Cleaning and food group Unilever has been looking at the future of the tea branch since the middle of last year. In recent years, consumers have started to drink less tea and, for example, more artisanal coffee. As a result, the turnover growth of the tea brands is too low, according to Unilever CEO Alan Jope. He wants Unilever to focus more on parts that grow faster, such as cosmetics and skin care products.
Competitors on the horizon
The tea division was soon able to count on a lot of attention. In addition to CVC, investor Advent International was also reportedly in the race to acquire ekaterra for quite some time. Several other investors such as Carlyle, Clayton Dubilier & Rice and KKR are also said to have expressed interest.
Ekaterra has eleven factories on four continents. In addition, the company has its own tea plantations in three countries.
Unilever expects the sale to be completed in the second half of next year. Before that time, various regulators, among others, still have to give their approval.
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