Wired News – Unilever Sells ‘Flora’-Spreads Business to KKR & Co.; Streamlines its Operations to Maximize Stockholders’ Returns

Stock Monitor: KKR & Co. Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 19, 2017 / Active-Investors issued a free report on Unilever PLC (NYSE: UL), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=UL as the Company's latest news hit the wire. On December 15, 2017, KKR & Co. L.P. (NYSE: KKR) ("KKR") announced on December 15, 2017, that it has entered into a binding agreement with Unilever, which is one of the world's leading suppliers of Personal Care, Home Care, and Food and Refreshment Products. Under the terms of the agreement, KKR has agreed to purchase its global Spreads business for $8.04 billion on a cash-free, debt-free basis. The investment is being funded by both the European and North American private equity funds of KKR. Sign up now for our free research reports at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Unilever most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage UL and KKR are available at:

www.active-investors.com/registration-sg/?symbol=UL

www.active-investors.com/registration-sg/?symbol=KKR

‘Spreads' Performance

Unilever, an Anglo-Dutch consumer goods group, put up its Spreads business for sale in April 2017 after the customers' intent shifted largely to butter and healthier options. Sale of margarine and spreads, once considered healthier than butter, have been observing a long-term steady decline in Europe and the United States.

Sales of margarine in the UK declined 12% YOY in 2017, while butter sales advanced 2% YOY in 2017, as per the figures from Kantar Worldpanel. Speculations state that a turnaround in expert advice on dairy fats has resulted in the resurrection of ‘real' butter. Moreover, the growth in home baking and the ever-narrowing price gap between butter and margarine is responsible for the decline in sales of the latter. However, Unilever undertook multiple steps to stem the decline and the unit is quite profitable currently.

Post the closure of the agreement, Unilever's soap and shampoo business would remain important consumers of edible oils on a world scale, but with a limited purchasing power. The Company has maintained its efforts to encourage sustainable growth and reduction of child labor in palm agriculture, to which KKR has agreed to retain.

The FS Investments Coalition

Prior to the announcement, on December 11, 2017, KKR and FS Investments agreed to co-manage $18 billion in lending assets as Blackstone Group L.P. transitioned away from helping them manage for FS Investments. As per the announcement, the two companies plan to manage the largest middle-market platform of lending vehicles, which consists of KKR's $4.4 billion Corporate Capital Trust Inc., and four FS pools, including the $4.1 billion FS Investment Corp., as per the initial announcement.

Company Growth Prospects

KKR announced on December 08, 2017, the acquisition of Hyperion, a leading manufacturer of industrial tool components, from Sandvik. Hyperion was a global provider of manufacturing products, using high-quality materials known for their hardness and toughness. KKR stated that it found an accretive growth opportunity to help support the growth of the Company and customers by putting up the business as a standalone entity.

KKR views the ‘Spreads' acquisition as a step to strengthen its portfolio through consumer brands. The Company stated that it looks forward to deploying its global network and operational expertise to support the expansion prospects. The offer, according to KKR, is expected to complete in mid-2018 where Unilever intends to return the net cash realized to shareholders, unless more value-creating acquisition alternatives come to light.

Stock Performance Snapshot

December 18, 2017 - At Monday's closing bell, Unilever's stock was slightly up 0.46%, ending the trading session at $56.22.

Volume traded for the day: 915.45 thousand shares.

Stock performance in the last month – up 0.82%; previous six-month period – up 3.42%; past twelve-month period – up 41.61%; and year-to-date - up 38.13%

After yesterday's close, Unilever's market cap was at $166.90 billion.

Price to Earnings (P/E) ratio was at 23.52.

The stock has a dividend yield of 2.95%.

The stock is part of the Consumer Goods sector, categorized under the Personal Products industry. This sector was up 0.8% at the end of the session.

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