PRIVATE equity giant CVC Capital Partners yesterday outbid rivals Advent and Carlyle at auction to take a sip of Unilever's tea arm for €4.5bn (£3.79bn).

The tea business, Ekaterra, includes household brew brands such as PG tips, Pukka and Lipton , among a portfolio of 34 others which added €2bn to Unilever's sales last year.

Unilever boss Alan Jope said the FTSElisted consumer goods conglomerate was looking forward to seeing the business "prosper under CVC's ownership."

"The evolution of our portfolio into higher growth spaces is an important part of our growth strategy for Unilever. Our decision to sell Ekaterra demonstrates further progress in delivering against our plans," he added.

Unilever, which makes everything from Dove to Ben & Jerry's, had been looking to hive off its tea unit since 2019, after demand for black teas had dropped. Jope had been under some pressure to turn around Unilever as its share price languishes and it struggles to compete in the face of high inflation.

Shares rallied in the final minutes of trading as news of the auction winner broke, but still closed 0.1 per cent lower at 3,850p.

Completion of the deal is expected in the second half of 2022.

(c) 2021 City A.M., source Newspaper