According to sources familiar with the situation, Unilever Plc (ULVR.L) has recruited Morgan Stanley (MS.N) and Evercore Inc (EVR.N) to sell a basket of non-core beauty and personal care brands, including Q-Tips and Impulse, two years after abandoning the project.
Hein Schumacher, who became Unilever’s CEO in July to restructure the company as it battles inflation, made his first big move by reviving the sale process.
Elida Beauty also owns Caress, TIGI, Timotei, Monsavon, St. Ives, Zwitsal, Ponds, Brut, Moussel, Alberto Balsam, and Matey. Sources estimate Elida made $760 million in 2022.
The sources said Unilever engaged with Credit Suisse to sell Elida in 2021 but stopped the process later that year when other consumer businesses cherry-picked brands for sale, resulting in offers that did not reach its valuation expectations.
Since then, sources said that Unilever has sought to create Elida, an autonomous unit that could appeal to private equity companies. Sources say Morgan Stanley and Evercore have contacted various parties to gauge interest in acquiring Elida for a multi-billion-dollar deal.
The sources requested anonymity due to confidentiality. Morgan Stanley, Unilever, and Evercore declined to comment.
Everything from sunflower oil and transportation to packaging and grain has risen in price, hurting the consumer products industry for two years. Unilever, creator of Dove soap and Ben & Jerry’s ice cream, is reviewing its non-core assets to sell to raise cash.
Raising prices to cover increased costs helped Unilever beat second-quarter sales growth predictions. It also contemplated selling Klondike and Breyers ice cream.
