Hindustan Unilever on Tuesday said it has signed an agreement to sell and transfer its “Modern” bakery business to Everstone Group-backed Nimman Foods for an undisclosed amount.
The transaction comes at a time when the consumer goods company aims to exit its non-core businesses. The bread and bakery business is also facing challenges from other breakfast options in the market such as oats and corn-flakes, amid low growth for breads.
According to the agreement, Hindustan Unilever will sell and transfer its “Modern” business as on-going basis to Nimman Foods, and will continue to manage operations until the transaction is completed, the company said.
Everstone Group is an India-focused investment company and runs a private equity and a real-estate fund.
Hindustan Unilever had acquired the “Modern” brand in 2000, and turned around the business. The iconic brand is known for its white and sweet breads, as well as bakery products such as cakes and muffins. Currently, the bread and bakery products are made at six manufacturing units and a network of franchisees across the country, it said.
The deal to sell and transfer the business is subject to regulatory clearances and approvals, it said. Hindustan Unilever and Everstone will work together to get those approvals, it added. FE