KKR Considers Selling Margarine Business Acquired from Unilever for $10 Billion

Private equity firm KKR has engaged bankers to explore the sale of its margarine and spreads business, previously acquired from Unilever, at a valuation of approximately $10 billion. The business, known as Flora Food Group, has been put up for sale after KKR abandoned its goal of pivoting its portfolio toward plant-based products. KKR originally acquired the business unit from Unilever in 2018, planning to grow it by focusing on the plant-based food trend. However, the company has since abandoned this strategic objective and instead concentrated on making the existing business more profitable. Flora Food Group holds a significant market share in Europe for the production of margarine, butter, and other spreads. The sale process is still in its early stages, with potential buyers including other private equity funds and strategic investors. Proceeds from the sale could be used by KKR to redirect capital into other investment areas. The sale of Flora Food Group is seen as part of KKR's efforts to restructure its portfolio. As the company reviews its investments in the food sector in recent years, the completion of this sale is expected to generate a significant cash inflow. This is not investment advice.