Unilever to Sell Q-Tips Maker Elida Beauty to Yellow Wood

The monetary phrases of the deal, anticipated to be accomplished in mid-2024, weren’t disclosed.

Elida’s portfolio contains greater than 20 magnificence and private care manufacturers together with Q-Ideas, Brut, Caress, Timotei and Tigi and the enterprise generated about $1.02 billion in revenues in 2022.

Unilever first tried to divest Elida in 2021 however pulled the method later that 12 months, after cherry-picking of the manufacturers on the market by different shopper corporations led to presents that didn’t meet its valuation expectations.

The corporate, which additionally makes Dove cleaning soap and Ben & Jerry’s ice cream, revived the sale course of in September.

Yellow Wooden emerged because the winner in an public sale for the enterprise and was negotiating remaining features of the deal, Reuters reported final week.

The patron items business has struggled with hovering prices for about two years, as objects from sunflower oil and grains to packaging and delivery have change into dearer.

Hein Schumacher, who took the reins as Unilever chief govt officer in July, mentioned two months in the past the corporate would now concentrate on 30 key manufacturers which account for 70 % of its gross sales.

The Elida Magnificence sale can be the second time in a 12 months that Yellow Wooden buys non-core manufacturers from Unilever. In Might, Yellow Wooden acquired Unilever’s private care model Suave.

Reporting by Anchal Rana and Eva Mathews in Bengaluru; Enhancing by Rashmi Aich. This text was from Reuters and was legally licensed by means of the DiveMarketplace by Trade Dive. Please direct all licensing inquiries to authorized@industrydive.com.

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As strategics like Unilever and L’Oréal divest from once-core traces, a extra selective strategy to M&A is underway.