UK - Private equity players to queue for Unilever

CapVest and Blackstone are mentioned as some of the potential buyers in press reports. CapVest recently acquired Swedish Findus, specialising in frozen food, from EQT.

Patrick Cescau, group chief executive of Unilever, says: 'Deciding to put the majority of our European frozen food business up for sale has been a tough call. It has been a successful business for us over many years, we’ve built some great brands for consumers with memorable advertising, and they’ve created real value for our shareholders.

'However, although we have made great progress in increasing profitability in recent years growth has been harder to come by. After an exhaustive review we have decided that the best way for us to create value is by selling the majority of the European frozen food businesses.'

Unilever’s review, which was announced in September 2005, looked at all the possibilities for the business. The review concluded that a strategy to grow the businesses would not deliver satisfactory value for Unilever. Unilever concluded that its great frozen food brands could prosper better under other ownership and that divestment was the best option. It also concluded that now was a good time to consider divestment as it would be likely to lead the expected future consolidation in the frozen food sector.

The Italian frozen food business will continue to operate as part of the Unilever business. Patrick Cescau says: 'We believe it is right to retain the Italian Frozen Food business because it is inherently an attractive business with good growth prospects. It has a good track record, has strong leadership positions and is strategically important in a number of ways. It is our biggest single business in Italy and its retention plays an important role in future trade relations in that country. It is also an important source of innovation and technology in the attractive frozen meals segment that is proving so successful in the US.'

Over time Unilever has bought and sold many businesses and factories and has built up vast experience of managing people issues both sensitively and professionally. It is acutely aware of the people issues and is committed to working with the relevant employee representatives in the countries affected.

Unilever’s intention is to sell the business if the price is right, in whole or in part, as going concerns.

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