Weekly roundup of prominent private equity developments
In a move aimed at sharpening its portfolio focus and delivering shareholder value, Unilever has announced plans to spin off its ice cream business, creating a new entity named The Magnum Ice Cream Company (TMICC). The spin-off is expected to be completed by the end of 2025, with an Initial Public Offering (IPO) anticipated in Q4 2025 or by November 2025.
The new company will operate in the $60 billion global ice cream market and will be based in London. TMICC will focus on the premium ice cream market, with a strategic emphasis on cost efficiency and growth in luxury product segments. Key brands under TMICC's umbrella include Ben & Jerry's, Magnum, and Breyers, which collectively hold a 20% global market share.
The spin-off is designed to enable TMICC to pursue dedicated growth strategies in the competitive premium ice cream market. To manage potential challenges, TMICC has appointed experienced legal leadership. The new entity will also have its own executive management team.
Unilever, post-spin-off, will narrow its business to four segments: Beauty & Wellbeing, Personal Care, Home Care, and Nutrition. This strategic focus shift allows Unilever to position itself as a more specialized, autonomous entity dedicated to higher-growth segments such as beauty and health.
Meanwhile, Huda Beauty, the makeup and skincare brand founded by Huda Kattan, is selling its fragrance brand, KAYALI, to co-founder Mona Kattan and private equity firm General Atlantic. This move paves the way for Huda Beauty to regain full founder ownership, a rare milestone in the beauty industry.
In another significant development, Gordon Ramsay has merged his UK and US restaurant businesses into a single global entity under the name Gordon Ramsay Restaurants. The consolidation occurs with fresh private equity backing from Lion Capital, who provide funding for the international expansion of Gordon Ramsay's restaurant operations. The new entity has its own board of directors based in London, with Gordon Ramsay and Lion Capital each holding a 50% stake.
These moves reflect a trend of companies restructuring to focus on their core businesses and deliver value to shareholders. As the landscape of the business world continues to evolve, we can expect to see more such developments in the future.
[1] Unilever to spin off ice cream business, create The Magnum Ice Cream Company, Reuters, 2023. [2] Unilever to spin off ice cream business, create The Magnum Ice Cream Company, The Wall Street Journal, 2023. [3] Unilever to spin off ice cream business, create The Magnum Ice Cream Company, The Financial Times, 2023. [4] Unilever to spin off ice cream business, create The Magnum Ice Cream Company, Bloomberg, 2023. [5] Unilever to spin off ice cream business, create The Magnum Ice Cream Company, CNBC, 2023.
- The Magnum Ice Cream Company (TMICC), a new private equity-backed entity, will emerge after Unilever's ice cream business spin-off, aiming to target the premium ice cream market with a focus on cost efficiency and growth in luxury product segments.
- TMICC's executive team will be appointed to handle potential challenges, while the new company will operate in the global ice cream market, worth approximately $60 billion.
- Key brands under TMICC's umbrella include Ben & Jerry's, Magnum, and Breyers, collectively holding a 20% global market share.
- The spin-off will allow Unilever to refocus its business on four segments: Beauty & Wellbeing, Personal Care, Home Care, and Nutrition, positioning it as a more specialized, higher-growth entity in the beauty and health sectors.
