Consumer goods giant Unilever (LON:ULVR) announced on Monday its decision to sell Elida Beauty, its non-core beauty and personal care division, to U.S. private equity firm Yellow Wood Partners.
The financial terms of the deal, anticipated to be finalized in mid-2024, were not disclosed.
Elida Beauty’s diverse portfolio encompasses over 20 beauty and personal care brands, including well-known names such as Q-Tips, Brut, Caress, Timotei, and Tigi. In 2022, the business generated approximately £800 million ($1.02 billion) in revenues.
Unilever’s initial attempt to divest Elida Beauty took place in 2021 but was halted later that year. The company revived the sale process in September 2023. Yellow Wood emerged as the successful bidder in the auction for Elida Beauty, and negotiations for the final aspects of the deal were conducted last week.
The sale of Elida Beauty aligns with Unilever’s strategy, articulated by CEO Hein Schumacher in September, to focus on 30 key brands representing 70% of its sales. The deal with Yellow Wood follows the private equity firm’s acquisition of Unilever’s personal care brand Suave in May 2023.
The completion of the Elida Beauty sale is expected to mark Unilever’s continued streamlining of its brand portfolio amid challenges posed by rising industry costs.