LONDON — Consumer goods and food giant Unilever on Thursday announced plans to sell off its Spreads business as part of a new growth strategy spurred by rival Kraft’s recent attempted takeover.
Unilever said in a statement that after a review of the business “we have decided that the future of the Spreads business now lies outside the Group.”
The division includes well-known brands such as Flora, Stork, and I Can’t Believe It’s Not Butter and has an annual turnover of around €3 billion (£2.5 billion). Unilever plans to either sell or demerge the Spreads business.
The decision is part of a wider review of the business, sparked by US food giant Kraft’s recent attempted takeover. Other measures announced by Unilever on Thursday include a planned €5 billion (£4.2 billion) share buyback, a 12% dividend increase, and a target of 20% margin growth by 2020.
The Anglo-Dutch business, which has dual headquarters in both the UK and the Netherlands, says it will also review its legal structure as it adds complexity to the business. This suggests that the group, which makes everything from Ben & Jerry’s ice cream to Dove soaps, may consolidate into one entity in either country.
CEO Paul Polman says in a statement: “Our recent review concluded once more that our strategy for long-term value creation through growth and compounding returns on investment is the right one for Unilever and for our shareholders. It also highlighted the opportunity to go faster and further.”
Unilever’s business review follows an unsolicited takeover approach from US rival Kraft Heinz in February. Unilever rejected the initial bid and the $US143 billion (£114 billion) offer was withdrawn after just two days.
More from Business Insider UK:
- Brexit is set to damage Britain’s tourism industry
- The experts who got it wrong on Brexit think they have found a way to predict the next recession
- A high school principal quit after student journalists investigated her credentials
- PwC: ‘Fintech and financial services are competing less and coming together’
- After nearly 10 months of chaos the pound is finally returning to normal