Weekly Roundup of Private Equity News Highlights
Unilever Spins Off Ice Cream Business, Creating $67 Billion Company
Unilever, the multinational consumer goods company, has announced plans to streamline its focus on higher-growth segments such as beauty and health. A significant part of this strategy involves the spin-off of its global ice cream business, tentatively named the Magnum Ice Cream Company. The company is aiming for an Initial Public Offering (IPO) in the fourth quarter of 2025, with listings planned in key financial centres such as Amsterdam, London, and New York.
The ice cream division, which includes popular brands like Magnum, Ben & Jerry’s, and Selecta, will operate via varied regional setups, including notable joint ventures. In India, the ice cream unit is being demerged under the name Kwality Walls India Ltd (KWIL), with a shareholder vote scheduled for August 12, 2025. Post-demerger, KWIL will be independently listed, and shareholders of Hindustan Unilever Limited (HUL) will receive one share of KWIL per HUL share they hold. The listing for KWIL is expected by Q4 FY 2026.
The Magnum Ice Cream Company, with its anticipated valuation of around $67 billion, is expected to demonstrate solid growth. The business showed a sales volume and revenue increase of approximately 5.9% in the first half of 2025, contributing notably to Unilever's overall revenue.
This strategic separation reflects Unilever’s intent to unlock value by creating a focused, pure-play ice cream entity with distinct management and capital market presence. The key operational motivations for the spin-off include addressing supply chain and logistical complexities unique to ice cream compared to Unilever’s other businesses, enabling both entities to operate more efficiently and grow faster.
Meanwhile, in the world of luxury fragrances, Huda Beauty is selling its fragrance brand, KAYALI, to co-founder Mona Kattan and private equity firm General Atlantic. This sale paves the way for Huda Beauty to regain full founder ownership, marking a rare milestone in the beauty industry. In a separate development, Gordon Ramsay has merged his UK and US restaurant businesses into a single global entity, named Gordon Ramsay Restaurants. Both Ramsay and private equity firm Lion Capital will hold a 50% stake in the new entity, which will have its own executive management team based in London.
These developments underscore the ongoing dynamism in the consumer goods and hospitality industries, as companies continue to explore strategies for growth and operational efficiency.
- The spin-off of Unilever's ice cream business, Magnum Ice Cream Company, is aiming for an Initial Public Offering (IPO) in the fourth quarter of 2025, attracting interest from investors in key financial centers such as Amsterdam, London, and New York.
- Investors in private equity are taking notice of the anticipated $67 billion valuation of the Magnum Ice Cream Company, which plans to operate independently following a demerger.
- Unilever's strategy to create a focused, pure-play ice cream entity was motivated by the need to streamline its business and address supply chain complexities unique to the ice cream industry.
- Following the demerger of the ice cream unit in India, Kwality Walls India Ltd (KWIL) will operate as an independent entity in the real-estate of the consumer goods industry, offering investment opportunities for shareholders.
- In the beauty industry, Huda Beauty is selling its fragrance brand, KAYALI, to private equity firm General Atlantic, allowing Huda Beauty to regain full founder ownership and demonstrating the ongoing trend of PE investment in the business sector.
