Unilever has revealed that German food manufacturer Dr. Oetker has made a binding offer to buy its Alsa baking and dessert business for an undisclosed price.
Asla, which was acquired by Unilever in 2010, manufactures flan mixes and baking powder among other products.
Unilever revealed that the transaction with Dr. Oetker would include Asla’s manufacturing plant in Ludres, France.
Of late, Unilever has been looking to optimize its business to provide better value for the company’s shareholders. Reports of its plans emerged in March 2017 when the company was reported to be mulling over selling certain food brands from its consumer goods portfolio to raise a capital of £6 billion.
In December 2017, the Anglo-Dutch consumer goods giant made a deal of €6.825 billion to offload its margarine and spreads business to global investment firm KKR.
The sale of its Alsa baking and dessert business seems to be in line with the media reports in March 2017.
Commenting on the sale of Alsa baking and dessert business to Dr. Oetker, Bauke Rouwers – General Manager of Unilever France, said: “In the context of our global strategy to accelerate long term, sustainable value creation, the baking and desserts category is not part of Unilever’s evolving core portfolio.
“We are confident that under Dr. Oetker’s ownership and support, Alsa, which has established a strong legacy in the world of desserts since its origins in 1897 in Lorraine, would be able to progress to its full potential”.
Dr. Oetker is a historic food processing company, which was founded way back in 1891. The German food company manufactures baking powder, cake mixes, yogurts, pudding and frozen pizza among others.
Commenting on the transaction by the company with Unilever, Didier Muller – General Manager of Dr. Oetker France said: “Alsa is a brand whose know-how and product quality perfectly complement our product range.
“We would be happy to welcome Alsa into Dr. Oetker’s group. Our goal is to pursue the brand’s growth and development both in France and internationally, based on its know-how and innovation capabilities.”
The binding offer from Dr. Oetker will have to go through the standard regulatory requirements and consultation processes, said Unilever.
Last month, Unilever struck a deal to acquire Romanian ice cream company Betty Ice for an undisclosed price, in a move to strengthen its ice cream business.