Unilever (LON:ULVR) has inked a deal to buy Brazilian natural and organic food business Mãe Terra, the Anglo-Dutch group has said. The move comes as the consumer goods giant looks to secure a foothold in Brazil’s health food market, and follows an acquisition of an organic herbal tea business.
Unilever’s share price has been subdued in London in today’s session, having slipped 0.67 percent lower to 4,349.67p as of 09:27 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.06 percent lower at 7,434.43 points. The group’s shares have added more than 17 percent to their value over the past year, and are up by some 32 percent up in the year-to-date.
Unilever announced in a statement yesterday that it had signed an agreement to acquire organic food business Mãe Terra, for an undisclosed amount. The company operates in several categories with a portfolio which includes organic cereals, cookies, snacks and culinary products.
“We are excited about this acquisition. Mãe Terra has a great following in Brazil and strengthens our food portfolio, allowing us to accelerate our expansion in the high-growth naturals and organic segment,” Fernando Fernandez, President of Unilever Brazil, commented in the statement. The FTSE 100 group further noted that Brazil is the fifth largest market in the world for healthy food and beverages, with 79 percent of consumers regarding health and nutrition as priorities.
The acquisition underscores the Anglo-Dutch group’s push into the organic foods business. Last month, Unilever inked a deal to buy British organic herbal tea business Pukka Herbs.
The Anglo-Dutch consumer goods giant is scheduled to update investors on its third-quarter performance on October 19.