Unilever has completed the sale of its tea business, ekaterra, to CVC Capital Partners Fund VIII. The two entered a sale agreement in November 2021 for $6.8 billion (4.5 billion Euro) on a cash-free, debt-free basis. The deal is expected to close in the 2H CY22
The sale does not include Unilever’s tea business in India, Nepal, and Indonesia, or its interests in Pepsi Lipton ready-to-drink joint ventures and distribution businesses.
Midway through 2020, Unilever separated the tea business into the new entity – ekaterra – with a portfolio of 34 brands including Lipton, PG Tips, Pukka, T2, and TAZO. In 2020, its revenue was $3.1 billion.
Unilever first flagged selling its tea business in January 2020 after releasing its CY19 results. Its tea market had seen the slowest growth rate in a decade and finance head Graeme Pitkethly said all options for the business would be looked at.
