Unilever completes sale of all Russian assets to Arnest Group
Unilever has confirmed the sale of its Russian subsidiary to local consumer goods company Arnest Group, marking an official end to the FMCG’s presence in Russia and Belarus. While no details of the transaction were disclosed, reports suggest the sale was made for around €520 million (US$568 million).
Hein Schumacher, CEO of Unilever, states: “Unilever has today completed the sale of its Russian subsidiary to Arnest Group, a Russian manufacturer of perfume, cosmetics and household products.”
“The sale includes all of Unilever’s business in Russia and its four factories in the country. Our business in Belarus is also included in the sale.”
“Over the past year, we have been carefully preparing the Unilever Russia business for a potential sale. This work has been very complex, and has involved separating IT platforms and supply chains, as well as migrating brands to Cyrillic.”
“The completion of the sale ends Unilever Russia’s presence in the country.”
Arnest Group has been one of the main beneficiaries since business began leaving Russia following the outbreak of war in Ukraine. It has done several deals with Western packaging companies during that time.
The group purchased Ball Corporation’s beverage packaging operations for US$530 million, and Heineken’s operations in a US$100 million debt repayment deal. It also made a US$800 million bid for Carlsberg’s brewery business.
Unilever previously said it was planning to remain in Russia despite ethical concerns over the war, saying that its operations provide everyday people in the country with basic food and hygiene products. It also employed around 3,000 people and highlighted the fact that a complete exit would mean the Kremlin taking over and profiting from its assets.
