Unilever Covers the Bases with Slim-Fast and Ben & Jerry's Acquisitions
Ok, what's it going to be? A dish of Ben & Jerry's Chunky Monkey premium ice cream as I settle into my comfy sofa to watch some after-dinner TV? Or do I skip dinner, toss back an Ultra Slim-Fast French Vanilla shake, throw on my sweats and get down to the gym for that master aerobics class? Hmmm…tough choice. But either way, Unilever wins.
Today, in two separate announcements, Unilever said it will buy Florida-based Slim-Fast Foods Company for $2.3 billion cash, and that Ben & Jerry's board of directors has approved its offer of $43.60 per share for all of the 8.4 million outstanding shares.
The acquisition of the Slim-Fast provides Unilever entry into the U.S. $1.3 billion nutritional supplement and weight management category - the fastest growing sector of the U.S. health food business. And with sales of U.S.$611 million, Slim-Fast becomes Unilever's sixth largest foods brand.
"Looking to the future, Slim-Fast will significantly increase our presence in functional foods and is ripe for international expansion," commented Unilever chairmen, Antony Burgmans and Niall FitzGerald.
Regarding the Ben & Jerry's deal, Burgmans and FitzGerald said, "We are delighted to welcome Ben & Jerry's into the Unilever family. It takes us into the super premium category for the first time. Ben & Jerry's is an incredibly strong brand name with a unique consumer message. We are determined to nurture its commitment to community values."
Under the terms of the agreement, Ben & Jerry's will operate separately from Unilever's current U.S. ice cream business. There will be an independent board of directors, which will focus on providing leadership for Ben & Jerry's social mission and brand integrity.
In commenting on the transaction, Ben Cohen and Jerry Greenfield, the co-founders of Ben & Jerry's, said, ``While we and others certainly would have preferred to pursue our mission as an independent enterprise, we hope that, as part of Unilever, Ben & Jerry's will continue to expand its role in society.''
Unilever is one of the world's largest consumer products companies with sales in excess of $45 billion. It produces and markets a wide range of foods and home and personal care products.
Ben & Jerry's produces a wide variety of super premium ice cream, ice cream novelties, low fat ice cream, low fat yogurt and sorbet, using Vermont dairy products and all natural ingredients.
Edited by Pam Ahlberg, Managing Editor, Food Online