Unilever N.V.
UNILEVER TO DIVEST MAJORITY OF EUROPEAN FROZEN FOOD BUSINESS
Ad hoc announcement transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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UNILEVER TO DIVEST MAJORITY OF EUROPEAN FROZEN FOOD BUSINESS
ITALIAN FROZEN FOODS BUSINESS RETAINED
Unilever today announced that it had decided to put the majority of its
Frozen Foods businesses in Europe up for sale. It decided to retain its
Frozen Food operations in Italy.
Patrick Cescau, Group Chief Executive, said: ‘Deciding to put the majority
of our European Frozen Food business up for sale has been a tough call. It
has been a successful business for us over many years, we’ve built some
great brands for consumers with memorable advertising, and they’ve created
real value for our shareholders.
‘However, although we have made great progress in increasing profitability
in recent years growth has been harder to come by. After an exhaustive
review we have decided that the best way for us to create value is by
selling the majority of the European Frozen Food businesses.’
Unilever’s review, which was announced in September 2005, looked at all the
possibilities for the business. The review concluded that a strategy to
grow the businesses would not deliver satisfactory value for Unilever.
Unilever concluded that its great frozen food brands could prosper better
under other ownership and that divestment was the best option. It also
concluded that now was a good time to consider divestment as it would be
likely to lead the expected future consolidation in the frozen food sector.
The Italian Frozen Food business will continue to operate as part of the
Unilever business.
Patrick Cescau said: ‘We believe it is right to retain the Italian Frozen
Food business because it is inherently an attractive business with good
growth prospects. It has a good track record, has strong leadership
positions and is strategically important in a number of ways. It is our
biggest single business in Italy and its retention plays an important role
in future trade relations in that country. It is also an important source
of innovation and technology in the attractive frozen meals segment that is
proving so successful in the US.’
Over time Unilever has bought and sold many businesses and factories and
has built up vast experience of managing people issues both sensitively and
professionally. It is acutely aware of the people issues and is committed
to working with the relevant employee representatives in the countries
affected.
Unilever’s intention is to sell the business if the price is right, in
whole or in part, as going concerns.
February 9, 2006
Notes to Editors:
– The intended sale includes the total frozen food portfolio under the
well-known Iglo and Birds Eye brands
– Unilever has a frozen foods portfolio in 11 countries: Austria, Belgium,
France, Germany, Greece, Ireland, Italy, Netherlands, Portugal, Spain and
the United Kingdom
– There are five sourcing units:
Cisterna – Italy
Reken & Bremerhaven – Germany
Lowestoft & Hull – UK
– Total turnover is approximately €2 billion
– The Bertolli branded frozen side dishes business in the USA will be
continued
– Around 3,500 people work in this area across Europe, excluding Italy
– The decision does not affect Ice cream which is a strategic priority for
Unilever and will be continued
Press contacts:
UK
Trevor Gorin
Head of UK Media Relations +44 20 7822 6010
Europe
Tanno Massar
Director, European Media Relations +31 10 217 4844
(c)DGAP 09.02.2006
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language: English
emitter: Unilever N.V.
Weena 455
3013 AL Rotterdam Niederlande
phone: +31 (0)10 217 4000
fax: +31 (0)10 217 4798
email: joanne.mcdonald@unilever.com
WWW: www.unilever.com
ISIN: NL0000009348
WKN: 860028
indexes:
stockmarkets: Amtlicher Markt in Frankfurt; Freiverkehr in Berlin-Bremen,
Hannover, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
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