Unilever completes divestment of Ragu and Bertolli brands to Mizkan for $2.15bn

Anglo-Dutch multinational consumer goods company Unilever has completed the sale of its North America pasta sauces business under the Ragu and Bertolli brands to Mizkan Group, for a total cash consideration of about $2.15bn.

Unilever noted that the annual turnover for Ragu and Bertolli is more than $600m.

The deal includes two production facilities – a sauce processing and packaging plant in Owensboro, Kentucky, and a tomato processing facility in Stockton, California.

The agreement to divest the pasta sauces business was announced by the two companies on 22 May 2014.

At the time, Unilever North America president Kees Kruythoff said the sale represented one of the final steps in reshaping the firm’s portfolio in North America to deliver sustainable growth, and would enable the company to sharpen its focus within the foods business.

"The Ragu and Bertolli business leads the pasta sauce category in the United States, and we believe that the potential of both brands can be fully realised with Mizkan," Kruythoff added.

Unilever has been positioning itself more as a personal care company than a food company and has divested various brands in recent years.

Unilever, which is one of the world’s leading suppliers of food, home and personal care products with sales in about 190 countries, reported annual sales of €49.8bn in 2013.

Based in Handa City, Japan, Mizkan Group is a privately held international food manufacturer that produces well-known international brands under the Mizkan umbrella. It holds a leading position in the liquid condiment category.