Key Takeaways
- • Apollo Global Management and Capvest are among private equity investors preparing to submit first-round bids for Flora Food Group, according to Sky News, with offers due as early as Tuesday.
- • KKR, Flora's current majority shareholder, is understood to be holding out for offers worth at least €7bn (£5.9bn).
- • OneRock, another private equity firm, has also reportedly expressed interest in bidding for the business.
- • Flora carries billions of euros of debt from KKR's acquisition nearly a decade ago, and has faced weak growth and rising input prices in the spreads category.
- • The auction is being run by Goldman Sachs and Citi; spokespeople for the bidders and Flora declined to comment.
Summary
A group of buyout firms is expected to submit initial offers this week for Flora Food Group, the spreads business behind brands including I Can't Believe It's Not Butter, according to Sky News. Apollo Global Management and Capvest are among the private equity investors preparing first-round bids, with offers reportedly due as early as Tuesday. City sources cited by Sky News said KKR, the company's current majority shareholder, is holding out for offers worth at least €7bn (£5.9bn). Insiders also said OneRock, another private equity firm, has expressed interest in bidding.
Flora was previously owned by Unilever and has been carrying billions of euros of debt since KKR acquired it almost a decade ago. Its financial performance has been disappointing, with sales across large parts of the spreads category weakened by slow growth and rising input prices. In August, the company reported a slight decline in half-year earnings. Apollo is one of the world's largest private equity investors and frequently pursues businesses in need of substantial operational improvement, while Capvest is a prolific backer of food and beverage companies.
Flora is run by David Haines, a former Vodafone executive, and chaired by Sir Roger Carr. The company, with a history dating to 1871, owns brands including Becel ProActiv, BlueBand, Country Crock and Violife. After KKR's acquisition it was rebranded as Upfield. It came close to a takeover by ADQ, the Abu Dhabi sovereign wealth fund, in 2024, but those talks were abandoned when the parties failed to agree on price. KKR had also previously planned to make its entire portfolio plant-based by 2025 but later dropped the proposal amid shifting consumption habits.
The sale comes as Unilever continues to offload major businesses, including Magnum Ice Cream and Lipton Teas and Infusions, and has recently agreed a larger deal combining its food division with McCormick. Sky News also reported that Colman's, the mustard brand, is subject to a separate sale process. Spokespeople for Apollo, Capvest, Flora Food Group and KKR declined to comment, and OneRock did not respond to a request for comment.
Flora was previously owned by Unilever and has been carrying billions of euros of debt since KKR acquired it almost a decade ago. Its financial performance has been disappointing, with sales across large parts of the spreads category weakened by slow growth and rising input prices. In August, the company reported a slight decline in half-year earnings. Apollo is one of the world's largest private equity investors and frequently pursues businesses in need of substantial operational improvement, while Capvest is a prolific backer of food and beverage companies.
Flora is run by David Haines, a former Vodafone executive, and chaired by Sir Roger Carr. The company, with a history dating to 1871, owns brands including Becel ProActiv, BlueBand, Country Crock and Violife. After KKR's acquisition it was rebranded as Upfield. It came close to a takeover by ADQ, the Abu Dhabi sovereign wealth fund, in 2024, but those talks were abandoned when the parties failed to agree on price. KKR had also previously planned to make its entire portfolio plant-based by 2025 but later dropped the proposal amid shifting consumption habits.
The sale comes as Unilever continues to offload major businesses, including Magnum Ice Cream and Lipton Teas and Infusions, and has recently agreed a larger deal combining its food division with McCormick. Sky News also reported that Colman's, the mustard brand, is subject to a separate sale process. Spokespeople for Apollo, Capvest, Flora Food Group and KKR declined to comment, and OneRock did not respond to a request for comment.
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