Consumer products giant Unilever NV UN recently sold the Motions, Just for Me, Consort, and Groom & Clean brands, and also the TCB brand in Africa, to an international hair care company Strength of Nature. The terms of the deal was not disclosed.
Strength of Nature is one of the fastest growing companies in the multi-cultural hair care category. The acquisition of the African rights for TCB and other brands will help Strength of Nature to further expand its international business. Not only will these brands strengthen its commitment to provide affordable and quality hair care products but will also enhance Strength of Nature’s portfolio of leading brands that includes Profectiv MegaGrowth, African Pride, Dream Kids, Beautiful Textures, Elasta QP, Soft & Beautiful, Soft & Beautiful Botanicals and Proline.
Unilever sold these brands as it remains committed to the ethnic hair care and men’s grooming categories and will continue to focus on the specific needs of both multicultural and male consumers with its global brands. The company believes that these brands will be able to realize their full potential with Strength of Nature.
In Dec 2013, Unilever sold its Soft & Beautiful, TCB and Pro-Line Comb-Thru brands in the hair care category to Strength of Nature for an undisclosed amount. That time the sale did not include TCB’s business in Africa.
Unilever has been diversifying its brands to concentrate on its core portfolio. In Jul 2014, it sold its Slim-Fast brand to a middle market private equity firm – Kainos Capital. In May 2014, the company completed the sale of its Ragu and Bertolli pasta sauces brands for $2.15 billion.
In Feb 2014, the company sold its meat snacks business to Berlin-based Jack Link’s Meat Snacks for an undisclosed amount. Prior to that, in January, Unilever sold its Royal pasta brand to RFM Corporation, one of the biggest diversified food and beverage companies in the Philippines.
In early Oct 2013, Unilever sold its Wish-Bone salad dressing business to food company Pinnacle Foods Inc. PF for $575 million, while in August, ConAgra Foods Inc. CAG bought its Bertolli and P.F. Chang's frozen meals brands for $265 million. In Jan 2013, the company sold its Skippy peanut butter business to Austin, MN-based producer of branded food and meat, Hormel Foods Corporation HRL for $700 million in cash.
Unilever currently has a Zacks Rank #3 (Hold).
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