Unilever hires consultants to sell ‘non-core’ beauty portfolio
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Unilever has hired Morgan Stanley and Evercore to sell a portfolio of non-core beauty and personal care brands as the company struggles with the impact of inflation.
The portfolio includes Q-Tips, Impulse, Caress, TIGI, Timotei, Monsavon, St Ives, Zwitsal, Ponds, Brut, Moussel, Alberto Balsam and Matey.
Two years ago, Unilever hired Credit Suisse to divest Elida Beauty portfolio but later scrapped its plan as other companies cherry-picked brands from the portfolio and did not satisfy the multinational FMCG company’s expectations.
Now the plan has been revived under the leadership of new CEO Hein Schumacher, who focuses on streamlining the business due to inflation, Reuters said in an exclusive report.
The report noted that Elida Beauty booked revenue of about $760 million in FY22, according to sources of the newswire.
Morgan Stanley and Evercore have already reached out to potential buyers to measure interest for the portfolio, which could be a multibillion-dollar deal, the sources said.
Questions & Answers
Q.Which consultancies has Unilever hired to manage the sale of its non-core beauty portfolio?
Which consultancies has Unilever hired to manage the sale of its non-core beauty portfolio?
Unilever has appointed Morgan Stanley and Evercore to handle the sale of its non-core beauty and personal care brands. These firms are currently gauging interest from potential buyers for the portfolio.
Q.What is the primary reason behind Unilever's decision to sell these beauty and personal care brands?
What is the primary reason behind Unilever's decision to sell these beauty and personal care brands?
The decision to sell these non-core brands stems from Unilever's ongoing challenges with inflation. The new CEO, Hein Schumacher, is focused on streamlining the business in response to these economic pressures.
Q.Was there a previous attempt to sell the Elida Beauty portfolio, and what was the outcome?
Was there a previous attempt to sell the Elida Beauty portfolio, and what was the outcome?
Yes, Unilever previously hired Credit Suisse two years ago to divest Elida Beauty. However, the plan was scrapped as other companies only cherry-picked brands, failing to meet the multinational's expectations for the portfolio.
Q.What was the reported revenue of the Elida Beauty portfolio in the last financial year?
What was the reported revenue of the Elida Beauty portfolio in the last financial year?
According to sources cited by Reuters, the Elida Beauty portfolio generated approximately $760 million in revenue during the 2022 financial year. The current sale is anticipated to be a multibillion-dollar deal.
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