Consumer products giant
) remains committed to its core portfolio to deliver sustainable
growth. Unilever's core businesses comprise detergents, foods,
toiletries, and specialty chemicals. It recently completed the sale
of its Ragu and Bertolli pasta sauces brands for $2.15 billion in
order to maintain its focus on its core products.
Per the deal, Unilever has sold the ownership of its Ragu and
Bertolli brand sauces, which generate sales of $600 million
annually, to Japan's Mizkan Group. The divestiture involves the
sale of two factories - a sauce processing and packaging facility
in Owensboro, KY and a tomato processing plant in Stockton, CA. The
deal is a strategic fit for Mizkan Group, a privately held maker of
condiments and sauces, as it expects to expand internationally.
Of late, Unilever has been divesting its non-core businesses to
focus its resources on the core food portfolio. In February, the
company sold its meat snacks business to Berlin-based Jack Link's
Meat Snacks for an undisclosed amount. Prior to that, in January,
Unilever sold its Royal pasta brand to RFM Corporation, one of the
biggest diversified food and beverage companies in the Philippines.
In Dec 2013, Unilever sold its Soft & Beautiful, TCB and
Pro-Line Comb-Thru brands in the hair care category to an
international hair care company - Strength of Nature for an
undisclosed amount. The sale however excludes TCB's business in
In early Oct 2013, Unilever sold its Wish-Bone salad dressing
business to food company
Pinnacle Foods Inc.
) for $575 million, while in August,
ConAgra Foods Inc.
) bought its Bertolli and P.F. Chang's frozen meals brands for $265
million. In Jan 2013, the company sold its Skippy peanut butter
business to Austin, MN-based producer of branded food and meat,
Hormel Foods Corporation
) for $700 million in cash.
Unilever currently holds a Zacks Rank #2 (Buy).
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