Unilever has refused to be drawn on a report the consumer goods giant has started talks with investors over the potential sale of its ice cream business.
The Ben & Jerry’s and Magnum brands owner declined to comment on a Bloomberg report when contacted by Just Food today (22 July). The news agency, quoting sources, said initial discussions had started with a group of investors and that Unilever was conducting presentations with possible suitors.
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Unilever announced the potential demerger of ice cream in March into a separate listed entity: “A demerger of ice cream is the most likely separation route…,” it said at the time, adding that “other options for separation will be considered to maximise returns for shareholders”.
CVC Capital Partners has again been touted as a potential buyer, with Bloomberg putting a price tag on a sale deal of as much as £15bn ($19.4bn).
The private-equity investor’s name also emerged in March, when the Financial Times’ sources identified CVC as reportedly expressing an interest in the ice cream business. The FT had flagged a €10-15bn ($10.8bn-$16.2bn) valuation.
CVC declined to comment on that report at the time. And Unilever also took a similar stance when asked by this publication to confirm the FT’s report it had hired Morgan Stanley and JPMorgan Chase as advisers.
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By GlobalDataAs well as CVC, Bloomberg sources have also put forward the likes of Advent International, Blackstone, Cinven and KKR as parties reportedly involved with the Unilever discussions and presentations.
Contacted by Just Food today, CVC, Cinven and KKR declined to comment. Advent and Blackstone have yet to respond.
Unilever, meanwhile, said in March that a final decision on the future of the ice cream division was unlikely before the end of 2025.
Ice cream delivered €7.9bn in turnover for Unilever last year, while the rest of the company’s food business, such as the Knorr soups, Hellmann’s mayonnaise and Colman’s mustard brands housed in the nutrition division, accounted for €13.2bn.
The other three remaining operational areas – beauty and wellbeing, personal care, and home care – generated €12.5bn, €13.8bn and €12.2bn, respectively.
A potential sale of ice cream has also raised questions, not for the first time, about the future of food within Unilever’s portfolio and whether other disposals could follow post completing a transaction next year.
Meanwhile, both CVC and KKR have a past relationship with Unilever. The former acquired the FMCG major’s Ekaterra tea business in 2022, while KKR snapped up the company’s spreads division in 2017.
