Unilever to sell global tea business to CVC Capital for €4.5bn

Unilever has agreed to sell its global tea business, ekaterra, to private equity firm CVC Capital Partners for €4.5bn.

The consumer goods giant said ekaterra is the world's leading tea business, with a portfolio of 34 brands including Lipton, PG tips, Pukka, T2 and TAZO®. In 2020, it generated revenues of around €2bn.

Chief executive officer Alan Jope said: "The evolution of our portfolio into higher growth spaces is an important part of our growth strategy for Unilever. Our decision to sell ekaterra demonstrates further progress in delivering against our plans.

"We are proud of the place that our Tea business has in our company's history. We look forward to seeing ekaterra, with its strong brands and global footprint, prosper under CVC's ownership."

The deal is expected to complete in the second half of next year. It excludes Unilever's tea business in India, Nepal and Indonesia as well as the company’s interests in the Pepsi Lipton ready-to-drink tea joint ventures and associated distribution businesses.