Unilever sells Q-Tips and Timotei to focus on 30 key grocery products

Unilever is to focus on 30 key products which account for 70% of its sales.

Grocery and consumer goods giant Unilever said it would sell Elida Beauty, which includes Q-Tips, Brut, and Tomotei, its non-core beauty and personal care division, to US private equity firm Yellow Wood Partners. 

The financial terms of the deal were not disclosed.

Elida's portfolio comprises of more than 20 beauty and personal care brands including Q-Tips, Brut, Caress, Timotei and Tigi and the business generated about £800m (€828m) in revenues last year. Hein Schumacher, who took the reins as Unilever chief executive, said two months ago the company would now focus on 30 key brands which account for 70% of its sales.

Unilever first attempted to divest Elida in 2021 but pulled the process later that year, after cherry-picking of the brands for sale by other consumer companies led to offers that did not meet its valuation expectations. The company, which also makes Dove soap and Ben & Jerry's ice cream, revived the sale process in September.

Yellow Wood emerged as the winner in an auction for the business and was negotiating final aspects of the deal. 

The consumer goods industry has struggled with soaring costs for about two years, as items from sunflower oil and grains to packaging and shipping have become more expensive.

The Elida Beauty sale would be the second time in a year that Yellow Wood buys non-core brands from Unilever. In May, Yellow Wood acquired Unilever's personal care brand Suave. 

Reuters