Unilever to divest ekaterra tea business to CVC Capital for €4.5bn
UK-based consumer goods company Unilever has agreed to divest ekaterra, its global tea business, to CVC Capital Partners Fund VIII for a sum of €4.5 billion.
ekaterra has a portfolio of 34 brands that include Lipton, Pukka, PG tips, TAZO, and T2.
In 2020, the tea business of Unilever had earned revenues of nearly €2 billion.
Pev Hooper — one of the managing partners at CVC Capital Partners, said: “ekaterra is a great business, built on strong foundations of leading brands and a purpose-driven approach to its products, people and communities.
“ekaterra is well positioned in an attractive market to accelerate its future growth, and to lead the category’s sustainable development. We look forward to working with the team to realise ekaterra’s full potential.”
ekaterra boasts of 11 tea production factories in four continents. Its tea estates are located in three countries.
The deal excludes Unilever’s tea business in India, Indonesia, and Nepal as well as the company’s interests in the Pepsi Lipton ready-to-drink tea joint ventures and related distribution businesses.
Alan Jope — CEO of Unilever said: “The evolution of our portfolio into higher growth spaces is an important part of our growth strategy for Unilever. Our decision to sell ekaterra demonstrates further progress in delivering against our plans.
“We are proud of the place that our Tea business has in our company’s history. We look forward to seeing ekaterra, with its strong brands and global footprint, prosper under CVC’s ownership.”
The deal, which is subject to certain regulatory approvals and conditions, is anticipated to close in the latter half of 2022.