New Delhi: Unilever PLC has agreed to sell its global tea business to CVC Capital Partners of 4.5 billion euros ($ 5.1 billion), concluded the process of reviewing and playing divisions which took more than two years.
The business sold, named Ekaterra, held a portfolio of 34 tea brands including Lipton, PG Tips, Pukka Herbs and Tazo and generated 2 billion euros in revenue in 2020.
However, maintaining Indian Indian operations and Indonesia also the joint venture of the bottle tea with PepsiCo.
Ekaterra will be sold to CVC Capital Fund VIII based on cash and debt-free in the process expected to conclude in the second half of 2022, Unilever said in a statement on Thursday afternoon.
Times Financial previously reported sales.
“The evolution of our portfolios into higher growth spaces is an important part of our growth strategy for Unilever.
Our decision to sell ekaterra show further progress in providing our plans,” said CEO Unilever Alan Jope.
Sales relieves Unilever from a business that has become income barriers for several years because demand for black tea is reduced and consumers change.
JOPE has been under pressure to turn off Unilever as a shares of languishing and struggle to compete in the face of high inflation costs, especially in developing country markets, the greatest source of income.
The JOPE plan is to focus on higher growth areas such as plant-based food, nutrition and premium beauty to increase sales growth.
The company last month reported quarterly quarterly sales which were stronger than expected but warned that inflationary pressure would only deteriorate in 2022.
Unilever shares were slightly lower in afternoon trade.