Why Unilever Isn't Spreading Its Bets

On Friday, Unilever plc (NYSE: UL) announced that it's received a binding offer of 6.8 billion euros ($8.1 billion) from investment firm KKR & Co., L.P. (NYSE: KKR) for its global margarine and spreads business. Unilever has been shopping this revenue stream for a while: In recent years, the spreads business has stalled and weighed on the company's top line. Brands like Country Crock, I Can't Believe It's Not Butter, and Becel require heavier marketing today to match the renewed interest in unadulterated butter.

Aside from considerations of profit, the margarine business also doesn't align as well with Unilever's current aspirations to be seen as a provider of more nutritive packaged foods. Let's unpack the financial and cultural logic that resulted in Unilever's disposition of an extremely durable investment.

Image source: Unilever.

Source: Fool.com