THE LAST QUARTER
Tea , too , for CVC Capital Partners
Unilever passes tea business to private equity company in multi-billion-dollar deal .
BY ROBERT STOCKDILL
Unilever has sold its global tea business – including T2 – to private equity company CVC Capital Partners , for € 4.5 billion ($ 7 billion ).
The business , called Ekaterra , owns 34 brands including Lipton , PG Tips , Pukka , T2 and Tazo and turned over € 2 billion ($ 3.1 billion ) last year . The company has 11 production factories on four continents and tea estates in three countries .
“ The evolution of our portfolio into highergrowth spaces is an important part of our growth strategy for Unilever ,” said CEO Alan Jope of the reason for the divestment . “ 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 sale is scheduled to be settled during the second half of 2022 and is subject to receipt of regulatory approvals . The deal excludes Unilever ’ s tea business in India , Nepal and Indonesia , as well as its joint venture with Pepsi Lipton covering ready-todrink teas , and any associated distribution business .
Pev Hooper , a managing partner at CVC Capital Partners , described Ekaterra as “ 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 ,” said Hooper .
Inside FMCG understands rival private-equity firms Advent and Carlyle unsuccessfully bid for the business .