Unilever (LON:ULVR) has snapped up an organic herbal tea business, the Anglo-Dutch consumer goods giant has said. The move comes as the company looks to boost its presence in what is estimated to be a €1.6-billion market.
Unilever’s share price has been little changed in London this morning, having inched 0.14 percent higher to 4,536.50p as of 09:56 BST, outperforming the broader UK market, with the benchmark FTSE 100 index having slipped into the red and currently standing 0.30 percent lower at 7,375.02 points. The group’s shares have added more than 26 percent to their value over the past year, and are up by just under 38 percent in the year-to-date.
Unilever announced in a statement yesterday that it had acquired organic herbal tea business Pukka Herbs. The British brand has a turnover of over £30 million and growth of around 30 percent. The FTSE 100 group, however, did not disclose the financial terms of the deal.
“Pukka has strong values and a clear purpose that aligns fully with our own sustainable growth model. There’s a clear strategic, philosophical and cultural fit for us,” Unilever’s Refreshment Category President Kevin Havelock said in the statement. The Anglo-Dutch consumer goods group further quoted 2016 data by Euromonitor as showing that Pukka was the fastest growing organic tea company in the world, while Nielsen figures suggested that the herbal fruit and green tea market was currently worth €1.6 billion.
Unilever’s move comes after the company vowed to look for ways to unlock shareholder value, following Kraft Heinz’s failed takeover bid. The FTSE 100 group recently updated investors on its interim performance, posting a rise in sales and earnings for the first half of the year.