Unilever Plc will part with brands such as Flora and I Can't Believe It's Not Butter under a €6.83-billion deal it announced with private equity firm KKR & Co. LP on Dec. 15.
KKR's binding offer for the division, which had turnover of about €3.03 billion in 2016, is subject to regulatory approval. The parties expect the transaction to close in mid-2018, Unilever said in a statement, adding that the transaction is on a cash-free, debt-free basis.
"After a long history in Unilever we decided that the future of the Spreads business would lie outside the Group," said Unilever CEO and Executive Director Paul Polman.
The deal excludes Unilever's spreads business in South Africa, which is part of a transaction between the Anglo-Dutch consumer goods maker and investment firm Remgro Ltd., Unilever said.
Unilever's deal with KKR comes after other companies and investment groups reportedly explored bits for the spreads business. Other bids reportedly included a joint proposal by investment management Apollo Global Management LLC and agricultural trader Archer Daniels Midland Co. the Financial Times reported Dec. 8.
A group including Bain Capital LP also made it to a final round of bidding, the Times reported in October.
Unilever first announced its intention to sell the spreads business in April, after it fended off an unsolicited takeover bid by Kraft Heinz Company.
