MUMBAI, INDIA — Nimman Foods Private Ltd., an investee company of the Everstone Group, has agreed to acquire the bread and bakery business of Hindustan Unilever Ltd. (HUL). Financial terms of the transaction were not disclosed.
HUL said its decision to divest is in line with its strategy to exit non-core businesses, while continuing to drive its growth agenda in the core packaged foods business. The transaction includes the sale and transfer of the Modern brand and business.
HUL and Everstone said they will work together to secure the necessary approvals to complete the transaction over the next few months. HUL will continue to manage the operations until the completion of the transaction.
|Sanjiv Mehta, c.e.o. and managing director of HUL.|
“Modern is an iconic brand that has been delighting consumers over the years through its range of high quality bread and value added bakery products,” said Sanjiv Mehta, chief executive officer and managing director of HUL. “Since its acquisition in 2000, HUL has strengthened the Modern business, driven consistent top-line growth and significantly improved profitability. Having turned around the business and built a sustainable growth model, we believe that the sale to Everstone will unlock the full potential of the Modern brand.”HUL’s bread and bakery business consists of a full range of white and sweet bread, health and wellness bread and value-added bakery products such as cakes, muffins, buns, pavs and cream rolls under the Modern brand name. The business currently has six operating manufacturing units and a network of franchisees across India.