MergerLinks’ Post

🚨FOOD INDUSTRY NEWS🚨 Unilever has kicked off initial discussions with buyout firms about a possible sale of its ice cream business, which could be worth as much as £15 billion ($19.4 billion), according to people familiar with the matter. The consumer goods company has started holding management presentations with potential bidders. Private equity firms Advent International, Blackstone, Cinven and CVC Capital Partners Plc are among those that have shown preliminary interest.🍦 #manda #icecream #sale #foodindustry #newsletter

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

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 😎

Mars Wrigley + Kellanova = SNACKING GIANT As a former employee of both companies I can see how this proposed merger could be a huge success. Both companies are people driven organisations, employing some amazing talent, whose every day actions are guided by some very similar principles. Both companies have created some powerhouse brands, that lead in their respective categories and play an important role in customer’s lives and their every day occasions. Both take a clear stance on sustainability, social responsibility, packaging waste and renewable energy. Both share very similar target audiences, key customers and share a lot of baskets together. With many mergers & acquisitions the term ‘economies of scales’, or worse yet ‘synergies’ are bandied around. Frequently you will see expected annual cost saving forecasts reported. Not in this case. There is unlikely to be huge saving to be had from a confectionery company buying a crisps and snacks manufacturer. Yes, there will be some from shared ingredients. But I think this is a lot more than just a ‘synergies’ acquisition. Mars and Kellanova share customers, share occasions and share similar missions. I think this merger (if it goes ahead) will focus more on satisfying shared customer needs, missions and journeys and on capitalising on each other’s strengths to better satisfy future demand. Exciting times. #Mars #Kellanova #merger #digitalcommerce #ecommerce #cpg #cpgindustry #fmcg #fmcgindustry #grocery #snacking #retail #food https://lnkd.in/eMzRkP4s

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

The year’s largest merger is here: Mars and Kellanova. If you have never heard of Kellanova, you’ve certainly heard of the company it was recently formed out of – the Kellogg Company. Kellanova was launched in 2023 (a mere 317 days from this announcement) as a carveout from Kellogg with the aim to separate the faster growing snack foods from the slower growth cereal business.  Steve and I sat down to share some perspectives on the deal this morning. I hope you'll check them out. We covered: 1) The category opportunities 2) International runway 3) Alignment with consumer trends 4) Hedging supply side challenges 5) Synergies at scale Check it out below. https://lnkd.in/gsagXvhq

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

This potential acquisition represents a significant development in the landscape of mergers and acquisitions within the consumer packaged goods (CPG) industry. Following Mars' recent acquisition of Kellanova, the prospect of Mondelez (MDLZ) combining with Hershey to form a $50+ billion entity signals the creation of a colossal player in the global snacking sector. Although this marks Mondelez’s second attempt to acquire Hershey, success remains contingent on the support of the Hershey Trust, which holds approximately 80% of the voting power. The Trust’s involvement will undoubtedly play a critical role in determining the outcome of this proposal. As stakeholders, including shareholders and employees, await further developments, this potential merger has the capacity to reshape the industry, particularly in North America. It also aligns with Mondelez’s strategic focus on scaling its chocolate and snacking portfolio. Exciting times lie ahead as this story unfolds, with the promise of advancing the next generation of chocolate and snacking innovation

More M&A activity may be on the horizon for well-known brands, including Utz Brands, and Freshpet. This comes after Mars agreed to purchase Kellanova for $35 billion, and the article from Seeking Alpha details predictions of what could be next. I would be interested to hear your thoughts on the potential of this activity, as well as how it will impact the respective industries. #Mergers #Acquisition #Mars #Kellanova

Today's big news in the FMCG world is that Mars and Kellanova have reportedly struck a landmark $35.9 billion acquisition deal. Is this move set to reshape the food manufacturing landscape? It certainly highlights the industry's ongoing trend of consolidation. For businesses and leaders in the FMCG sector, this is a significant reminder of the importance of strategic mergers and acquisitions in driving growth and staying competitive. Deals like this offer opportunities for expansion, diversification, and strengthening market positions. As these giants combine forces, industry players must consider the ripple effects of this on supply chains, market share, and innovation. This deal highlights the need for agile leadership and a C-suite built of forward-thinking individuals ready to navigate an evolving market landscape. #MarsKellanova #MandA #FMCG