Unilever Plc is said to be in advanced talks to sell its Elida Beauty division, which includes a number of non-core beauty and personal care brands, to private equity firm Yellow Wood Partners.
Elida Beauty’s portfolio includes brands such as Q-Tips, Impulse, Caress and TIGI, and is expected to generate approximately $760 million in sales in 2022. Yellow Wood Partners, which specializes in consumer sector investments, is finalizing the details of the deal, which could value the company at less than $1 billion. However, the deal is unconfirmed and could still fall through. Neither Unilever nor Yellow Wood have officially commented on the transaction.
Unilever’s move to sell Elida Beauty is part of a broader strategy to focus on its most profitable and core brands, particularly in light of recent financial challenges in the consumer goods sector, including rising costs. The company’s new CEO, Hein Schumacher, has prioritized streamlining Unilever’s brand portfolio by focusing on the best performing brands. This potential sale follows a similar pattern of divesting non-core brands, as seen with Unilever’s earlier sale of Suave to Yellow Wood.
