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Unilever has agreed to sell its global tea business for billions

Ekaterra is the world’s leading Tea business, with a portfolio of 34 brands including Lipton, PG tips, Pukka, T2 and TAZO. The business generated revenues of around €2 billion in 2020. Unilever announced the sale to CVC Capital Partners Fund VIII last week.

Completion of the transaction is subject to completion of works council consultation processes and the receipt of certain regulatory approvals. Completion is expected in the second half of 2022.

The transaction perimeter excludes Unilever’s Tea business in India, Nepal and Indonesia as well as Unilever’s interests in the Pepsi Lipton ready-to-drink Tea joint ventures and associated distribution businesses.

“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,” said Alan Jope, CEO of Unilever.

“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. I would like to thank our Tea colleagues around the world for their passion and commitment to our Tea business and wish them well for the future.”

Pev Hooper, a Managing Partner at CVC Capital Partners said ekaterra is well positioned in an attractive market to accelerate its future growth.

“We look forward to working with the team to realise ekaterra’s full potential.”

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