Unilever is selling its tea division for £3.8 billion to a private equity firm.
The consumer products titan makes PG Tips and Lipton teas under the name Ekaterra.
It’s sold the world-famous brands to CVC Capital Partners.
The acquisition is subject to regulatory approvals and is expected to complete in the second half of 2022.
The deal will not include Unilever’s tea business in India, Nepal and Indonesia.
Unilever’s chief executive officer Alan Jope said:
He 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 look forward to seeing Ekaterra, with its strong brands and global footprint, prosper under CVC’s ownership.”
Pev Hooper, managing partner at CVC Capital Partners, said:
“Ekaterra is a great business, built on strong foundations of leading brands and a purpose-driven approach to its products, people and communities.
“Ekaterra is well positioned in an attractive market to accelerate its future growth, and to lead the category’s sustainable development.
“We look forward to working with the team to realise Ekaterra’s full potential.”