Unilever sells tea division to CVC

Unilever has found a buyer for its tea: investor group CVC Capital is acquiring the business for 4.5 billion euros. Brands such as Lipton, Pukka and more will thus change hands.

Faster growth sought

The world’s largest tea company has a new owner: Ekaterra used to oversee 34 different tea brands under the Unilever holding, but is now owned by private equity group CVC Capital Partners. Unilever will receive 4.5 billion euros for the acquisition. Brands such as Lipton, PG tips, Pukka and T2 accounted for a turnover of 2 billion euros in 2020.

In 2019, Unilever conceived the sale plans, even though the FMCG company later denied it. The brand manufacturer wants to focus more on higher growth activities, CEO Alan Jope said of that decision. Pev Hooper, Managing Partner at CVC, nevertheless thinks they can still accelerate the tea company’s growth.

The deal is expected to be approved in the second half of 2022. However, Unilever will not be completely tea-free from then on: key tea countries India, Nepal and Indonesia are not included in the acquisition. Lipton iced tea will also remain a joint venture between PepsiCo and Unilever.