The Jakarta Post
Publicly listed consumer goods manufacturer PT Unilever Indonesia agreed to sell its food spreads businesses to KKR & Co. during a shareholders meeting on Thursday. The buyout is worth a reported Rp 2.92 trillion (US$ 210 million).
“This business separation marks the next step in reshaping and sharpening our portfolio for long-term growth,” Unilever Indonesia president director Hemant Bakshi said in a release after an extraordinary shareholders meeting.
“The sale will allow the spreads businesses to stand alone, focusing on growth and innovation,” he said.
The businesses would be handled by KKR subsidiaries.
The decision was made by Unilever Indonesia following KKR's recent offer to Unilever's global management - Unilever NV and Unilever Plc. - in December last year. The offer included the purchase of spreads commercialized by Unilever Indonesia.
“As part of the Unilever corporation, which operates around the world, the company [Unilever Indonesia] must always align with Unilever’s strategy and global policy for commercialized trademarks in Indonesia,” said Hemant.
The spreads businesses that Unilever Indonesia sold to KKR comprise intangible assets of global trademark Frytol, Blue Band Master and Blue Band and the domestic trademarks for Samin Oil and Blue Band Gold. Unilever Indonesia would also sell its tangible assets such as production assets, equipment, inventory and its factory building in Cikarang, West Java, that is used to produce butter and margarine products.
The deal between the two companies is expected to be finalized in July.
With the sale of its spreads assets, Unilever Indonesia would focus on the personal care and food categories.
KKR & Co. is an American global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit. (sau)