Consumer products giant
) is focused on shaping its portfolio to deliver sustainable
growth and thereby concentrate on its core portfolio. Unilever's
core businesses comprise detergents, foods, toiletries, and
specialty chemicals. In order to do so, it recently agreed to
sell its meat snacks business to Berlin-based Jack Link's Meat
Snacks for an undisclosed amount.
Per the deal, Unilever will sell its Bifi and Peperami brands
to Jack Link's. Unilever's Bifi brands have a presence in
Germany, Benelux, Austria and Switzerland, while Peperami has
established its footprint in the UK and Ireland. The sale would
also include the manufacturing unit in Ansbach, Germany.
Of late, Unilever has been divesting its non-core businesses
to focus its resources on the core food portfolio. On Jan 6,
2014, Unilever agreed to sell 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 Jan 2013 the company sold its Skippy
peanut butter business to Austin, Minn.-based producer of branded
food and meat,
Hormel Foods Corp.
) for $700 million in cash. Last year, in August,
ConAgra Foods Inc.
) bought its Bertolli and P.F. Chang's frozen meals brands for
One more reason for the divestitures may include saturated
markets in the developed countries, as the macroeconomic climate
is not conducive. As a result, business in these markets has been
sluggish and volumes disappointing. Therefore, the company is
making a strategic move to optimize its resources and allocate
them to more promising markets. Unilever currently holds a Zacks
Rank #2 (Buy).
CONAGRA FOODS (CAG): Free Stock Analysis
HORMEL FOODS CP (HRL): Free Stock Analysis
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UNILEVER PLC (UL): Free Stock Analysis Report
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