Unilever has reportedly asked private-equity bidders for its spreads business to submit offers by a deadline of 19 October.
Reuters reported the deadline yesterday (5 October), citing unnamed sources.
Go deeper with GlobalData
Private-equity interest has been reported by Reuters and elsewhere to be set to come in from three consortia. Buyout houses Bain Capital and Clayton Dubilier & Rice are said to have teamed up. Private-equity firms Blackstone and CVC are said to be ready to join forces on an offer. KKR has also been reported to be set to lodge a bid, alongside Sovereign sovereign fund GIC.
Unilever announced in April it would exit the spreads category and has been mulling either the sale or de-merger of a business it has been struggling to grow in recent years.
Earlier this week, Archer Daniels Midland distanced itself from a report in the UK that claimed the US-based agribusiness giant was lining up an offer for Unilever’s spreads business.
Two weeks ago, Unilever announced the sale of its spreads assets in southern Africa through a deal with South Africa-based investment firm Remgro, which among its assets includes a majority stake in local food group RCL Foods, already a notable player in the category locally.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataEarlier in September, Amanda Sourry, the president of Unilever’s food business, told investors the company was targeting either the sale or de-merger of its spreads business by early next year.
“This is a huge and complex undertaking for Unilever. It’s certainly the biggest divestiture we’ve ever been through. We’ve got a business that’s present in over 60 countries. We’re in the process of developing the carved-out financials, audited for the business, to be in a position to start the sale process this fall,” she said.
“I think we’ve been very clear that we intend to drive the maximum value we can through the sale process. If, in fact, we’re not able to do that, we’re also very clear we’ll look at options such as a de-merger or selling parts of the business, rather than the entire business. But we’re absolutely on-track in this process with where we said we would be when we made the announcement in April.”
