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Unilever is delaying the spinoff of its ice cream business due to the U.S. government shutdown, but still expects to complete the sale in 2025.
The CPG giant initially spun off The Magnum Ice Cream Company on November 10. The world’s largest ice cream company It has $9.3 billion in sales and a portfolio of brands including Ben & Jerry’s, Talenti and Klondike.
however Submitted to the Securities and Exchange Commission Unilever on Tuesday said it had not received permission from regulators to declare the registration statement valid. Magnum’s stock requires SEC approval to be listed and traded on the New York Stock Exchange.
“Preparations for Demerger are progressing well and Unilever remains committed and confident to implement Demerger in 2025,” Unilever added in the SEC filing.
The U.S. government has been shut down since October 1 as Congress was unable to agree on a federal budget. SEC Operations As a result, it remained limited.Affects the agency’s ability to review and respond to corporate filings or shareholder proposals.
Unilever has begun laying the groundwork to spin off its ice cream business in 2024 as part of a major restructuring plan to simplify the conglomerate, which also sells Hellmann’s mayonnaise, Ax deodorant and Dove soap. The company said ice cream has “distinct characteristics” compared to other business segments that require more focused attention, including more seasonality and greater capital intensity.
Lisa Vortsman, Chief Marketing and Innovation Officer, U.S., The Magnum Ice Cream Company, said: He recently told Food Dive. The ability to focus solely on frozen new products allows the new business to prioritize innovation and distribution and further strengthen its supply chain.
A separate Magnum will also benefit from a premium-leaning portfolio and product mix that appeals to a wide range of consumers.
“This is a new frontier, and this focus will allow us to unlock a lot of opportunities for these brands,” Vortsman said. “We have the (ability), knowledge and expertise to take indulgence to another level.”
