Unilever is finding it difficult to offload its entire multi-billion pound ice cream division to a buyer due to the sheer size of the brands, city insiders have revealed.
The food and drink manufacturer could be forced to retain brands including Magnum, Wall’s and Ben & Jerry’s, which are valued at as much as £15bn, The Telegraph reported.
This figure means any potential buyers – such as private equity firms and Middle Eastern state-backed funds that are understood to have their eyes on the division – would be unable to acquire the ice cream empire.
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One way Unilever is expected to overcome this difficulty is by retaining a significant minority stake, yet industry experts still believe that buyers will have to pair up in order to bid on the brands.
This is not the first time Unilever has had to negotiate the sale of a section of its portfolio.
In 2017, the FMCG giant sold its spreads division, which included Flora and Stork margarine brands, to firm KKR for £6bn, and in 2021 CVC purchased its PG Tips tea division for £4bn.
The latest news follows in the wake of Unilever’s announcement that it was to axe around 7,500 jobs worldwide as its seeks to spin out its ice cream division and become a “leaner and more accountable” business.
Last month Unilever chief executive Hein Schumacher hinted that the Netherlands has a “good chance” of hosting the FMCG giant’s split-off ice cream division.
