Unilever Selling Spreads Business for $8 Billion to KKR

Unilever Selling Spreads Business for $8 Billion to KKR

The deal would be a result of Unilever's review of its operations in search of non-core assets, which it initiated earlier this year after rebuffing a $143 billion takeover approach in February from Kraft Heinz. Unilever said the sale would allow it to concentrate on products that are faster growing.

Kohlberg Kravis Roberts, or KKR, has won the auction to acquire Unilever's (UN) spread business, the Financial Times reports, citing two sources.

Today's announcement is another step further in the sharpening and reshaping of the company portfolio for growth over the long term, said CEO Paul Polman.

The brands to be sold include Becel, Flora, Country Crock and Blue Band.

"The consideration recognizes the market leading brands and the improved momentum", he added.

-The private-equity company is seeking to finalize the deal, which is expected to be valued at about $7 billion, and includes Flora margarine and other global brands, the FT says.

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.

More news: Were Mallika Sherawat and Her Boyfriend Kicked Out of Their Paris Apartment?
More news: Pfizer Incorporated (NYSE:PFE) Reports Decline in Sellers; Strong Momentum for Longs
More news: Every Xbox One X Purchase Gets A Free PUBG Copy

It added the margarine business was a "declining segment" that could be "better managed by others".

KKR, based in NY, had assets of $153 billion under its management as of September 30.

KKR firm had recently bought a majority of shares at vitamin maker Nature's Bounty and had also invested in India's Coffee Day Resorts and Chinese white goods maker Qingdao Haier.

Unilever said it would return net cash from the sale to shareholders, if it fails to pinpoint a "value-creating acquisition".

The offer is subject to certain regulatory approvals and employee consultation in certain jurisdictions.

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

Last month the foods business said it favored ending its Anglo-Dutch dual structure to become just one entity, but a final decision on that has been delayed while it decides if it would be based in the Netherlands or Britain.

Related Articles

  • $5.17 EPS Expected for International Business Machines Corporation (IBM)

    Adage Capital Partners Gp Limited Liability Company stated it has 0.37% in International Business Machines Corporation (NYSE:IBM). Murphy Pohlad Asset Management Llc decreased International Business Machs (IBM) stake by 35.87% reported in 2017Q2 SEC filing.

    Caesars Entertainment Corporation (CZR) EVP Sells 26131 Shares of Stock

    NY now owns 38,533 shares of the company's stock worth $368,000 after purchasing an additional 3,525 shares during the period. Renaissance Technologies Limited Liability Company stated it has 0.02% of its portfolio in Lowe's Companies, Inc. (NYSE:V).
    Atlanta International Airport power outage affects flights, leaves travelers in darkness

    Atlanta International Airport power outage affects flights, leaves travelers in darkness

    Delta Air Lines Inc. planes line up at Atlanta's Hartsfield-Jackson International Airport April 15, 2008 in Atlanta, Georgia. Flight-tracking website Flight Aware reported a halt to inbound flights and delays of 50 minutes to outbound flights.
  • Vikings will dearly miss Rudolph if he can't play Sunday

    Vikings will dearly miss Rudolph if he can't play Sunday

    He will be replaced by reserve tackle, who has not started at left tackle since his college days at Southern Mississippi. The Vikings have released Friday's injury report heading into Sunday's game against the Cincinnati Bengals at U.S.

    Shares in Microsoft Corporation (MSFT) Purchased by Griffin Asset Management Inc

    The stock of Microsoft Corporation (NASDAQ:MSFT) has "Overweight" rating given on Tuesday, September 22 by Pacific Crest. Schwab Charles Investment Management Inc. increased its stake in shares of Microsoft by 2.3% in the second quarter.
    Prince Harry interviews Barack Obama for upcoming radio show

    Prince Harry interviews Barack Obama for upcoming radio show

    In addition to the December 27 broadcast, Kensington Palace said the interview will also be released as a podcast. The interview focuses on their shared interest in building platforms for the next generation of young leaders.
  • (SCG) Stake Lowered by Nomura Asset Management Co. Ltd.

    A number of other hedge funds also recently bought and sold shares of SCG . 12 funds opened positions while 17 raised stakes. It improved, as 78 investors sold INTC shares while 649 reduced holdings. 67 funds opened positions while 217 raised stakes.
    Donald Trump thanks Vladimir Putin for remarks on strong U.S.  economy

    Donald Trump thanks Vladimir Putin for remarks on strong U.S. economy

    North Korea has conducted more than 20 ballistic missile tests during 2017 and its most powerful nuclear explosion to date. North Korea also started as a Soviet satellite state, so its ties with Russian Federation run deep. "China is helping.
    Woolly mammoth skeleton sells for $645G at auction

    Woolly mammoth skeleton sells for $645G at auction

    A whole mammoth skeleton of the species "Mammuthus primigenius" or "woolly mammoth", Lyon, France on November 17, 2017. A construction company that has the mammoth as its logo has snapped up the skeleton for a cool 430,000 euros.
  • Colts QB Andrew Luck may need biceps tendon surgery

    Colts QB Andrew Luck may need biceps tendon surgery

    If Andrew Luck experiences the same sort of pain when he begins throwing again, he may be forced to go under the knife again. First up will be "a throwing regimen" for Luck when he gets back from his trip overseas.
    Railway executive Hunter Harrison dead, CSX Corporation confirms

    Railway executive Hunter Harrison dead, CSX Corporation confirms

    CSX shares fell sharply on Thursday when the company announced Harrison was taking an unexpected leave of absence due to a medical condition.
    Teva workers protest layoffs as solidarity strike grinds country to halt

    Teva workers protest layoffs as solidarity strike grinds country to halt

    The strike began at 8 a.m. (0600 GMT/UTC) and affected airports, shipping ports, hospitals, banks and government offices. The acquisition has been accompanied by low prices for generics, particularly in the United States, a major market.