Today, according to informed sources cited by FashionNetwork, Unilever has hired investment banks Morgan Stanley and Evercore Inc to sell a range of non-core beauty and personal care brands, including Q-Tips and Impulse.
This move marks the first significant action taken by Hein Schumacher since his appointment as CEO of Unilever in July. It is reported that his focus is on streamlining the business while addressing inflationary pressures.
The portfolio of brands being offered for sale is called Elida Beauty and includes Caress, TIGI, Timotei, Monsavon, St. Ives, Zwitsal, Ponds, Brut, Moussel, Alberto Balsam, and Matey. According to insiders, Elida had estimated revenues of around $760 million in 2022.
Insiders revealed that Unilever had planned to divest Elida in partnership with Credit Suisse in 2021. However, the offers received from other consumer goods companies for the brands on sale did not meet Unilever’s valuation expectations, leading them to withdraw from the process. Since then, Unilever has been focused on establishing Elida as a standalone unit that would be attractive to private equity firms.
The sources added that Morgan Stanley and Evercore have already reached out to multiple parties to assess their interest in acquiring Elida, and the deal could be worth billions of dollars.
It is reported that the consumer goods industry has experienced a surge in costs over the past two years, including raw materials, transportation, and packaging. This has prompted Unilever to reevaluate its portfolio of non-core assets that can be sold. Furthermore, Unilever is also addressing the cost inflation crisis by raising prices and considering the sale of some of its US ice cream brands, including Klondike and Breyers.