11.19.21
Unilever has entered into an agreement to sell its tea business, ekaterra, to the private equity firm CVC Capital partners for $5.08 billion. In 2020, this portfolio of brands generated revenues of around 2 billion euros. ekaterra is a division of the company which includes 34 brands such as Lipton, Tazo, PG Tips, Pukka, and T2, and more.
The business, which owns the number-one brand share in tea in 58 countries, generated roughly $2.25 billion in sales last year. It owns 11 production facilities across four continents, and tea estates in three different countries.
Alan Jope, CEO of Unilever, said that the decision to divest from the portfolio of tea brands is necessary for the company to focus on areas of higher growth.
“We are proud of the place that our tea business has in our company’s history,” Jope said. “We look forward to seeing ekaterra, with its strong brands and global footprint, prosper under CVC’s ownership. I would like to thank our tea colleagues around the world for their passion and commitment to our tea business and wish them well in the future.”
The transaction, which is expected to be complete by the second half of 2022, will be done on a cash-free, debt-free basis, and will exclude certain Unilever tea businesses, such as those in India, Nepal, and Indonesia, as well as the Pepsi Lipton ready-to-drink tea joint ventures and distributions.
“Ekaterra is a great business, built on strong foundations of leading brands and a purpose-driven approach to its products, people, and communities,” Pev Hooper, managing partner at CVC Capital, said. “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 realize ekaterra’s full potential.”
“Ekaterra is a strong business with positive momentum and has an exciting future ahead under the new ownership of CVC. We look forward to the next stage of our journey as the world’s leading tea business,” John Davison, CEO of ekaterra, added.
The business, which owns the number-one brand share in tea in 58 countries, generated roughly $2.25 billion in sales last year. It owns 11 production facilities across four continents, and tea estates in three different countries.
Alan Jope, CEO of Unilever, said that the decision to divest from the portfolio of tea brands is necessary for the company to focus on areas of higher growth.
“We are proud of the place that our tea business has in our company’s history,” Jope said. “We look forward to seeing ekaterra, with its strong brands and global footprint, prosper under CVC’s ownership. I would like to thank our tea colleagues around the world for their passion and commitment to our tea business and wish them well in the future.”
The transaction, which is expected to be complete by the second half of 2022, will be done on a cash-free, debt-free basis, and will exclude certain Unilever tea businesses, such as those in India, Nepal, and Indonesia, as well as the Pepsi Lipton ready-to-drink tea joint ventures and distributions.
“Ekaterra is a great business, built on strong foundations of leading brands and a purpose-driven approach to its products, people, and communities,” Pev Hooper, managing partner at CVC Capital, said. “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 realize ekaterra’s full potential.”
“Ekaterra is a strong business with positive momentum and has an exciting future ahead under the new ownership of CVC. We look forward to the next stage of our journey as the world’s leading tea business,” John Davison, CEO of ekaterra, added.
