In a strategic move, consumer goods giant Unilever has announced the divestment of its non-core beauty and personal care division, Elida Beauty, in a deal with prominent U.S. private equity firm Yellow Wood Partners.
While the financial details of the transaction remain confidential, the completion of the deal is projected for mid-2024.
Elida Beauty boasts an impressive portfolio with over 20 beauty and personal care brands, including renowned names like Q-Tips, Brut, Caress, Timotei, and Tigi. In the fiscal year 2022, the division reported robust revenues of approximately £800 million ($1.02 billion).
This marks Unilever’s second attempt to divest Elida, following an initial effort in 2021 that was paused later that year. Unilever reinitiated the sale process in September, with Yellow Wood Partners emerging as the successful bidder in the subsequent auction, as reported by Reuters last week.
Unilever, recognized for iconic brands such as Dove soap and Ben & Jerry’s ice cream, is strategically realigning its focus under the leadership of CEO Hein Schumacher, who assumed the role in July. The company aims to concentrate on 30 key brands that contribute to 70% of its total sales.
The imminent sale of Elida Beauty represents the second instance in a year where Yellow Wood Partners has acquired non-core brands from Unilever. In May, Yellow Wood successfully acquired Unilever’s personal care brand Suave.
As the consumer goods industry grapples with rising costs spanning sunflower oil, grains, packaging, and shipping, Unilever’s strategic reshaping reflects the adaptability required in a dynamic market landscape.
