Unilever sells Culver Speciality Brands division to B&G Foods for $325 mn
01 Nov 2011
Consumer goods giant Unilever yesterday said that it has sold its Culver Speciality Brands division to US-based B&G Foods for $325 million in cash.
Unilever, based in the Netherlands, said the sale of specialty brands business comprises of Mrs. Dash, Molly McButter, Sugar Twin, Baker's Joy, Static Guard and Kleen Guard.
These brands, which generated revenue of around $90 million in the most recent fiscal year, are created at third-party sites so no Unilever plants are affected by the deal.
Culver Speciality Brands division came under Unilever's wing after it acquired Chicago-based Alberto Culver in September 2010 for $3.7 billion. (See: Unilever to buy Alberto Culver for $3.7-bn in cash)
In order to gain anti-trust approval for the deal, Unilever agreed to part with Culver Speciality Brands in the US and to fully shed its own 'Rave' hair products.
New Jersey-based B&G, the maker of brands such as Ortega and Cream of Wheat, said the acquisition is part of its strategy to buy smaller, high-margin companies.
"We are very pleased to add these six brands to the B&G Foods portfolio. Mrs. Dash seasonings have a unique position within the seasonings category and are very relevant to today's health conscious consumer. The other brands in the transaction are also consistent with B&G Foods' acquisition strategy of acquiring smaller, high-margin brands,: said David Wenner, president and CEO of B&G.
Mrs. Dash has been a favourite in American kitchens since its introduction in 1983. The pioneer of salt-free seasonings, Mrs. Dash is one of the most recognized brands in the seasonings blends segment.
Developed in 1982, Baker's Joy is the original no-stick baking spray with flour, while Sugar Twin is a calorie free sugar substitute and Molly McButter is the number two brand in the butter sprinkles segment.
Static Guard was launched in 1978 and is the number one brand in static elimination sprays and Kleen Guard is used as furniture polish.
