Acquisition of ekaterra by CVC

DATE
November 2021

TRANSACTION TYPE

Private Equity acquisition

VALUE
€4.5bn

SECTOR
Food & Beverage

Spayne Lindsay is delighted to announce that it has advised CVC Capital Partners on the agreed acquisition of Unilever’s global tea business, ekaterra for €4.5bn.

ekaterra is the world’s leading Tea business, with a portfolio of 34 brands including Lipton, PG tips, Pukka, T2 and TAZO®. With 11 production factories in 4 continents and Tea estates in 3 countries, ekaterra is growing a world of wellbeing through the regenerative power of plants. The business generated revenues of around €2 billion in 2020.

Pev Hooper, a 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.”

This transaction further evidences Spayne Lindsay & Co’s credentials in advising private equity clients on complex buy-side acquisitions and adds to its extensive experience in the beverages sector.

Completion of the transaction is subject to completion of works council consultation processes and the receipt of certain regulatory approvals. Completion is expected in the second half of 2022. The transaction perimeter excludes Unilever’s Tea business in India, Nepal and Indonesia as well as Unilever’s interests in the Pepsi Lipton ready-to-drink Tea joint ventures and associated distribution businesses.