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Unilever bangs out a deal for Sir Kensington’s
Posted on Friday, 21 April 2017 08:56
Unilever has agreed to acquire Sir Kensington’s, a US-based condiments firm known for its fancy ketchup and mayonnaise, for an undisclosed amount just months after rebuffing a USD 143.00 billion takeover offer form Kraft Heinz.
While the Hellmann’s mayonnaise and Ben and Jerry’s owner did not unveil the price of the deal, people familiar with the matter told Bloomberg the target may have been worth around USD 140.00 million and will help the group re-energise its business.
Unilever, which has seen an increase in sales lifted by higher prices, in part due to exchange rate factors following the decline of the sterling after the Brexit vote to leave the European Union, expects the transaction to close in the next few weeks.
Sir Kensington’s is an up and coming condiments company which makes natural and non- genetically modified organism ketchup and eggless mayonnaise, while also creating a range of mustard products.
Bloomberg cited a report by Nielsen as saying eggless mayonnaise is still a small part of the USD 1.40 billion US mayonnaise market; although it has been significantly expanding in recent years as sales were up 20.0 per cent to USD 20.60 million in 2016.
Scott Norton, co-founder of the target, said: “Working with Unilever will allow us to more rapidly expand distribution while holding true to our values as we help define the next generation of good food.”
For the consumer products giant, the acquisition is its first since it rejected Kraft Heinz, the maker of Heinz Ketchup, USD 143.00 billion takeover offer in February as it undervalued the business.
The company has been looking to increase its sales to over USD 3.00 billion by expanding distribution in major cities, Bloomberg reported, adding this includes Sir Kensington’s headquarters in New York.
That being said, Unilever is not shy to large acquisitions, making headlines in 2016 from the USD 700.00 million purchase of household cleaning products group Seventh Generation and the USD 1.00 billion paid for men’s grooming company Dollar Shave Club.
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