Unilever to dispose of US bakery division

Unilever is to sell the US bakery division it acquired when it bought food giant Bestfoods for $21.3bn earlier this year.

LONDON (Brand Republic) – Unilever is to sell the US bakery division it acquired when it bought food giant Bestfoods for $21.3bn earlier this year.

The Bestfoods Baking Company comprises 19 companies and makes brands such as Entenmann’s cakes. Although it accounted for 20% of overall sales, the division contributed only 10% of Bestfoods’ profits last year.

Analysts say the sale makes sense for Unilever, which set out its mission to concentrate on 400 core brands and cull underperforming ones last year. It is thought the company would make up to $2bn from the sale.

The move comes as Unilever sells off several European food brands, including Oxo, to appease competition authorities.

Last week, the Anglo-Dutch company also announced plans to sell its Elizabeth Arden fragrance company to a US perfume manufacturer, FFI Fragrances, for $300m.