Food Jungle’s Post

Unilever Said to Start Sale Talks for £15 Billion Ice Cream Unit: Unilever has initiated discussions with private equity firms about selling its ice cream business. Potential Buyers: Firms showing interest include Advent International, Blackstone, Cinven, CVC CAPITAL PARTNERS LIMITED, Clayton Dubilier & Rice, and KKR & Co. Timeline and Process: + Management presentations have started. + A formal sale process is expected to begin in the second half of the year. + Discussions are still in early stages. Unilever's Strategy: + Part of CEO Hein Schumacher's plan to drive growth and improve performance. + Includes separating the ice cream arm and cutting 7,500 jobs. Ice Cream Division Details: + 2023 sales: €7.9 billion + Profit margin is less than half of Unilever's personal care unit. + Includes brands like Ben & Jerry's and Magnum. Context and Motivation: + Follows appointment of activist investor Nelson Peltz to Unilever's board. + Aims to streamline portfolio and improve overall company performance. + Would remove controversies related to Ben & Jerry's political stances. Industry Trends: + Private equity firms are keen on acquiring assets from large corporations. + Similar deals are occurring in the consumer goods sector. Unilever's History of Divestments: Previously sold margarine and spreads business to KKR in 2017. Sold tea unit to CVC in 2021. This potential sale represents a significant move in Unilever's ongoing efforts to restructure and improve its business performance. #Growth #Restructuring #Divestment #PrivateEquity #Business #Investment #Performance #IceCream I Bloomberg News I Swetha Gopinath I Dinesh Nair

Nelson Peltz’s Trian Partners Sells £180m Worth of Unilever Shares. Trian Partners, under the guidance of activist investor Nelson Peltz, recently divested approximately £180m ($231.3m) in Unilever shares. This move, detailed in an RNS filing, was for “portfolio management purposes.” This significant sale comes at a pivotal time, as Hein Schumacher, Unilever's new CEO, leads the company through strategic evaluations. Notably, Unilever's ice-cream division is under review, with potential outcomes including a spin-off or sale by the end of 2025. Nelson Peltz, who joined Unilever's board in 2022 after Trian Partners acquired a notable 1.5% stake, has been influential in driving strategic discussions. The recent share disposal raises questions about future directions and priorities for both Trian and Unilever. Read the full article here: https://lnkd.in/ghcyHxqz #FlavorWiki #StrategicInvesting #Unilever #NelsonPeltz #TrianPartners #FMCGLeadership

Interesting story in FT that Private Equity not interested in Unilever’s ice cream business. “an executive at one private equity firm [said] that [they] had explored a potential deal with Unilever, adding it was not clear how a buyout group could approach the business ‘differently to the current management’. They said that it would be difficult to make ice cream less of a seasonal product in Europe.” NSS!!!! 🤣🤣🤣 Haven’t these people heard of Baked Alaska ??? Honestly, buy an apple-pie company to go with it - I thought they were “mergers” experts ??? For a few quid l’ll give them sight of the thesis I wrote for the MBA I couldn’t finish in the mid ‘90s because I was usually hungover and I developed a rash on my neck from the polo neck sweaters that were obligatory in the case study classes. In it I proposed a business plan to extract value from “hitherto unspotted latent synergistic opportunities and early wins apparent in a merger”between the Fever Tree and Gordon’s brands … I proposed a classic sum-of-the-parts valuation (basically 3:1 - any more tonic and it is like club soda and any less and it takes the back of your throat out) I also suggested some bolt-on acquisition low hanging fruit we could finance via tranching - aka add a slice of lemon 😎

In a strategic move , Unilever unveiled a major restructuring plan on Tuesday, announcing the spinoff of its ice cream unit—home to iconic brands like Magnum and Ben & Jerry's. This restructuring not only involves operational changes but also raises legal complexities, particularly regarding trademark ownership. Whether the ice cream business becomes a standalone entity or is picked up by another, the process of assigning trade marks to the new owner will be critical. #intellectualproperty #trademarks #foodandbeverages

The M&A Appetite in Food: A Strategic Outlook for 2024 Recent buzz around major food companies like Mondelēz and General Mills reveals a keen interest in accelerating M&A activities in 2024. While the focus shifts towards strategic "bolt-on" transactions for deeper category presence, an underlying narrative begs attention: the role of private funding sources in shaping the future of food industry M&A. The drive for acquisitions is clear, with industry leaders actively scouting the market for complementary deals. However, a critical aspect not fully explored is the pivotal role of private equity (PE) firms, venture capital (VC), and corporate investors in facilitating these transformative moves. Their involvement could be the linchpin in realizing many potential transactions that align with consumer trends and category expansions. The industry's cautious optimism, mirrored in executives' strategic patience and discipline amidst high asking prices, underscores the importance of aligning acquisition targets with long-term growth objectives. However, bridging the valuation gap remains a challenge, one that innovative funding and investment strategies could address. Private funding entities bring not only capital but also strategic resources and a network that can propel acquired companies to new heights. Their participation could catalyze more deals, especially in trending sectors like snacking, frozen foods, and health-conscious products. As we navigate the evolving landscape, the synergy between strategic corporate objectives and flexible, innovative financing will define success. The food industry stands at the cusp of significant transformation, where the right partnerships and funding mechanisms can unlock unprecedented growth opportunities. Let's discuss how we can leverage these insights for strategic M&A planning and execution in the food ingredients sector. Your thoughts and experiences are invaluable as we explore the dynamics of modern acquisitions and the untapped potential of private funding sources. #MandA #FoodIndustry #PrivateEquity #StrategicGrowth #Innovation

As we were discussing Mergers & Acquisitions during our lectures, one question popped into my mind. " Is there any other motive for a company to merge into or acquire another company except profitability, growth, and expansion?" Then, the "Unilever’s Acquisition of The Vegetarian Butcher" case caught my attention. When Unilever acquired The Vegetarian Butcher in December 2018, it wasn’t just a business move—it was a statement about the future of food. This case is a very good example of "Acquiring for not only Profit but also for Sustainability". The prominent points of this Acquisition which sets it apart are: 1. Endorsing Sustainability: Alan Jope, the CEO of Unilever emphasized that the acquisition was about creating a more sustainable food system. He also stated that due to a shift in consumers lately to clean eating, they are increasingly aware of the environmental impact of their food choices, and they want brands that reflect their values. By acquiring The Vegetarian Butcher, Unilever is not only expanding its portfolio but also positioning itself as a champion of ethical consumption. 2. Promoting a Healthier Lifestyle: Unilever proudly shared its sustainability goals during the acquisition of The Vegetarian Butcher, viewing it as a vital step toward promoting healthier, plant-based diets. This move aligns with their mission to transform the food industry for a better planet. 3. Strategic Motives which were emphasized in this Acquisition: ->Unilever's acquisition of The Vegetarian Butcher aligns with its sustainability goals, reducing carbon footprints and promoting ethical sourcing.  ->It also taps into the booming $74.2 billion plant-based market by 2027, allowing Unilever to expand its brand and cater to growing consumer demand for healthier, sustainable food options while driving sales growth. This case illustrates that the motives behind M&A can extend beyond mere profit—embracing sustainability can create a more significant impact for both the business and society in this changing world. What do you think? Can there be other motives for a Merger beyond financial growth and sustainability? I would love to hear your thoughts!! #MergersAndAcquisitions #SustainabilityInBusiness #CSR #Unilever

The arguments for the divestiture make sense, considering Unilever's product portfolio, dedicated cold supply chains for such a small piece of the pie - only $8.6B - is questionable however as Unilever slims down to its core business and drives growth, expect it will be on the hunt for acquisitions that complement their business and offer synergies; let's not forget that back in 2017 KraftHeinz attempted to take over Unilever in an unsolicited offer of $143B and they might be interested in a "2nd Round" #mergers&acquisitions #unilever #kraftheinz #3G #buffet

Major Restructuring at Unilever: Ice Cream Business Spinoff Unilever, the conglomerate behind beloved brands like Ben & Jerry's, Magnum, and Breyers, is embarking on a significant restructuring journey. The move, affecting up to 7,500 global roles, primarily office-based, signals a pivotal shift in the company's strategic direction. Unilever plans to demerge its ice cream business into a new, independently listed entity by the end of 2025, aiming for substantial cost savings of approximately $868.3 million. This strategic overhaul narrows Unilever's focus to four key segments: beauty and wellbeing, personal care, home care, and nutrition, echoing Nestle's earlier decision to hive off its ice cream division. Amid evolving market demands and the quest for operational efficiency, this restructuring reflects Unilever's adaptability and forward-thinking approach. #Unilever #CorporateRestructuring #BusinessStrategy #IceCreamBusiness #MarketAdaptation

🌮✨ PepsiCo acquires Siete Foods for $1.2 billion, diversifying its range of foodstuffs! 💼🌟 🥗 PepsiCo aims to expand its portfolio of health-conscious, culturally inspired foods with the acquisition of Siete Foods, solidifying its position in the fast-growing “better-for-you” market. 🌱🌍 📊 This strategic move will leverage Siete’s unique appeal, aligning with PepsiCo’s push for more inclusive and wellness-focused brands. 🤝💚 💬 Tell us your thoughts in the comments, and don’t forget to click the link below to dive deeper into the full report! 🔗📖 #MergerSight #PepsiCo #SieteFoods #Food 🌟 By Anna Chesca, Aditya Tatwawadi, Ahyaan Malik, Alexander Scothorn (University of Cambridge), Muditt Khurana, Amarthya C. (Massachusetts Institute of Technology) 🚀

36 Square Capital has reinvested in Nestlé, purchasing shares at CHF 90.66 each today. Previously, Nestlé was a part of 36 Square Capital's holdings from 2020 to 2021. Despite challenges associated with the water products in its portfolio, 36 Square Capital views the stock as undervalued. This valuation is similar to its low during 2019 and the lowest price point during the Covid crisis, around CHF 90. Considering the pre-tax yield of nearly 3.5%, we have opted to reinvest in Nestlé, now constituting 1.5% of our current portfolio. As a Top 100 global brand, Nestlé enhances our portfolio's strength, characterized by brands that possess substantial moats, high Return on Invested Capital (ROIC), and significant pricing power, aligning with our core principles of value investing. #valueinvesting #nestle